Data Centers in Bellingham
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Bellingham – Affordable Power in the Pacific Northwest
Bellingham offers a compelling, low-cost power alternative to the primary Seattle data center market, well-suited for workloads that require geographic diversity in the Pacific Northwest. The region's infrastructure provides reliable connectivity and access to significant renewable energy sources, making it a strategic choice for resilient deployments. Its location also serves as a secondary hub for reaching both Pacific and Canadian markets.
Bellingham: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though fewer long-haul carriers than primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hub is Seattle. Private connectivity is available. |
| Power Cost | $0.048/kWh – as of September 2025 | Exceptionally low industrial power costs, driven by a high mix of hydropower. |
| Disaster Risk | High (93.22) – as of September 2025 | Elevated risk profile requires careful site selection and facility engineering. |
| Tax Incentives | Yes | State-level sales and use tax exemptions are available for qualifying data centers. |
| Sales Tax | 6.50% (Washington State) – as of Midyear 2025 | Standard state sales tax applies; specific exemptions may reduce the burden. |
Network & Connectivity Ecosystem
Bellingham is a secondary connectivity market, leveraging its proximity to the major Pacific Northwest interconnection hub in Seattle. While it has a smaller local ecosystem, it provides sufficient network infrastructure for most enterprise and disaster recovery needs.
Carrier Density & Carrier Neutrality: The market contains a focused group of regional and local providers, with at least one carrier-neutral facility available, as of September 2025. Access to the broader ecosystem of over 100 carriers is typically achieved via network extensions from Seattle.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Bellingham, as of September 2025. All major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are accessible with low latency via dedicated circuits to nearby interconnection facilities in Seattle.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately between carriers or routed through the Seattle Internet Exchange (SIX), one of the largest and most active IXPs in the United States.
Bare Metal: Bare metal server options are available, often provisioned from providers located in the Seattle metropolitan area. This allows businesses to combine colocation in Bellingham with on-demand compute from providers like Hivelocity and phoenixNAP.
Power Analysis
Washington state is known for its abundant and inexpensive hydroelectric power, a key advantage for the Bellingham market. This allows data centers to operate with lower costs and a significantly greener energy profile compared to many other US markets.
Average Cost Of Power: Industrial power rates are exceptionally low, averaging around $0.048/kWh, as of September 2025. This cost structure provides a substantial operational expense advantage for high-density computing and large-scale deployments. The grid is dominated by renewables, with hydropower accounting for approximately two-thirds of the state's electricity generation.
Power Grid Reliability: The regional power grid is well-engineered and benefits from the stability of the Bonneville Power Administration's extensive network. Data center facilities in the area are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Bellingham provides a strategic location with favorable tax policies for data center operators and tenants, creating a business-friendly environment for digital infrastructure investment.
Proximity To Key Business Districts: The city's data centers serve local government, education, and healthcare sectors. More importantly, they offer a disaster recovery and secondary site location for businesses headquartered in the Seattle and Bellevue metropolitan areas, about 90 miles to the south.
Regional Market Reach: Bellingham is positioned to serve workloads targeting Western Washington and the Lower Mainland of British Columbia, Canada, including the Vancouver metro area. Its location near the Canadian border makes it a viable point of presence for cross-border data traffic.
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 incentive directly reduces the high upfront capital costs associated with building out or refreshing server hardware, making investment more attractive.
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 risk profile is driven by its location in a seismically active region with varied geography.
Key risks include earthquake, volcanic activity from nearby Mount Baker, wildfire, and potential coastal and riverine flooding. Other notable risks for the region include landslides, strong winds, and winter storms. Facility selection and design must account for these factors to ensure operational resilience.
