Data Centers in Bellingham
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Bellingham, Washington – Low-Cost Hydro Power Edge
Bellingham offers a compelling niche market for specific IT workloads, leveraging some of the lowest power costs in the United States. Driven by a hydropower-heavy grid, the region provides a cost-effective environment for deployments that are power-intensive but less sensitive to hyper-low latency. This makes it a strategic choice for businesses aiming to optimize operational expenses for disaster recovery sites, backup storage, and certain compute applications.
Bellingham, Washington: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity, though not a primary national hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in the Seattle area; private extension options are available. |
| Power Cost | $0.05/kWh (Industrial) | Among the lowest in the nation, primarily sourced from clean hydropower. |
| Disaster Risk | High (NRI Score: 93.22) | Elevated risk profile requires careful facility selection and disaster recovery planning. |
| Tax Incentives | Yes | Washington provides sales and use tax exemptions for qualifying data center equipment. |
| Sales Tax | 6.50% (Washington State) | As of September 2025. Local taxes may apply. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a smaller market, Bellingham has a focused connectivity ecosystem with access to at least one carrier-neutral data center, as of September 2025. The total carrier count is modest compared to nearby Seattle, but sufficient for redundant regional connectivity.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Bellingham, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via the primary interconnection hub in Seattle, typically through private network interconnects or wavelength services.
Internet Exchange Points (IXPs): Public peering is not a feature of the Bellingham market. Most network peering is conducted privately or through the Seattle Internet Exchange (SIX), a major peering point for the Pacific Northwest.
Bare Metal: Bare metal server options are available in the broader Washington region, often provisioned out of Seattle data centers. Providers like phoenixNAP and ColoCrossing can serve customers in the area.
Power Analysis
Average Cost Of Power: Bellingham's industrial power cost is approximately $0.05/kWh, as of September 2025. This rate is exceptionally low for the United States, presenting a significant operational cost advantage for high-density computing. The grid mix is dominated by approximately 67% hydropower, offering a stable and renewable energy source.
Power Grid Reliability: The power grid in the Puget Sound region is well-engineered, drawing from a diverse generation portfolio anchored by substantial hydroelectric capacity. Data centers in the area are typically supported by redundant power feeds from local utility substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Bellingham serve local businesses, Western Washington University, and act as a secondary disaster recovery site for companies in the Seattle metropolitan area. Its location also offers a potential low-latency connection point for traffic moving to and from Vancouver, British Columbia.
Regional Market Reach: Bellingham effectively serves Northwest Washington and provides a strategic location on the Cascadia corridor between Seattle and Vancouver. It is a viable option for organizations that need a presence in the Pacific Northwest but do not require colocation within a primary, high-cost market.
Tax Advantage For Data Centers: Washington offers a significant sales and use tax exemption on the purchase and installation of data center equipment for qualifying facilities. This state-level incentive dramatically reduces the upfront capital expenditure required for new builds or equipment refreshes, improving the total cost of ownership.
Natural Disaster Risk
Bellingham has a High natural disaster risk profile, with a FEMA National Risk Index score of 93.22, as of September 2025. The primary risks for infrastructure in this region are earthquake, wildfire, volcanic activity, and riverine flooding. Other notable risks include landslides, strong winds, and winter weather. Site selection and infrastructure design must account for these potential hazards to ensure operational resilience.
