Data Centers in Kennewick
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Kennewick – Strategic Hub for Low-Cost Power
Executive Summary
Kennewick, Washington is an emerging data center market for organizations prioritizing extremely low power costs and geographic diversity. Its location in the Pacific Northwest offers a resilient alternative to coastal hubs like Seattle, reducing operational expenses through some of the nation's cheapest, greenest electricity. This market is ideal for high-performance computing, disaster recovery, and content delivery for the inland Northwest.
Kennewick: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity but is not a primary international network exchange point. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud hubs are in Seattle and Portland; access requires private network extensions. |
| Power Cost | $0.05/kWh – as of September 2025 | Among the lowest in the US, with a grid mix dominated by hydroelectric power. |
| Disaster Risk | High (93.22 score) – as of September 2025 | Primary risks include earthquake, volcanic activity, wildfire, and riverine flooding. |
| Tax Incentives | Yes | Data center-specific sales and use tax exemptions are available for qualifying facilities. |
| Sales Tax | 6.50% (Washington State) – as of Midyear 2025 | State-level sales tax applies; local taxes may also be a factor. |
Network & Connectivity Ecosystem
Kennewick is a developing colocation market with a focus on regional connectivity. While not a primary interconnection hub, it provides capable infrastructure for serving Eastern Washington and surrounding states.
Carrier Density & Carrier Neutrality The market includes 1 data center with access to 3 network providers, as of September 2025. Carrier-neutral facilities provide connections to a mix of regional and national carriers for redundancy.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Kennewick, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through dedicated circuits to major hubs in Seattle or Portland. These private network connections ensure secure, low-latency performance.
Internet Exchange Points (IXPs) Public peering is not established in Kennewick. Most network peering is conducted privately between carriers or routed through major regional exchanges like the Seattle Internet Exchange (SIX).
Bare Metal Bare metal server options are available, typically through providers that service secondary markets. Companies like phoenixNAP and Hivelocity can deliver dedicated server infrastructure to the region.
Power Analysis
Washington State's power infrastructure is a primary advantage for data center operators in Kennewick, offering some of the lowest energy prices in North America.
Average Cost Of Power Industrial power costs average $0.05/kWh, as of September 2025. This extremely competitive rate significantly reduces the total cost of ownership for power-intensive operations. The grid is supplied primarily by renewable sources, with approximately 67% from hydroelectric and 8% from wind.
Power Grid Reliability The regional power grid is well-engineered and reliable, supported by substantial hydroelectric and nuclear generation from assets along the Columbia River. This provides a stable baseload of electricity suitable for high-uptime data center requirements.
Market Access, Business & Tax Climate
Kennewick provides a business-friendly environment with strategic access to the inland Northwest and valuable tax incentives for technology infrastructure.
Proximity To Key Business Districts Data centers in Kennewick are positioned to support the Tri-Cities area, a center for scientific research, agriculture, and advanced manufacturing. It serves key institutions like the Pacific Northwest National Laboratory and the region's expanding technology sector.
Regional Market Reach From Kennewick, organizations can effectively serve end-users across Eastern Washington, Eastern Oregon, and Idaho. It provides a strategic location for improving application performance and content delivery to this underserved inland population.
Tax Advantage For Data Centers Washington offers a sales and use tax exemption for the purchase and installation of data center equipment in qualifying facilities. This incentive dramatically lowers the upfront capital investment required to build or expand a data center footprint.
Natural Disaster Risk
Kennewick has a High natural disaster risk profile, with a FEMA National Risk Index score of 93.22, as of September 2025. While it avoids major coastal threats, operators must engineer facilities to withstand specific regional hazards.
The primary risks include earthquake, volcanic activity from the Cascade Range, wildfire, drought, and riverine flooding. Other notable risks are strong wind and winter weather. Thorough site selection and facility design are critical to mitigate these potential disruptions.
