Data Centers in Kennewick
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Kennewick – Low-Cost Power for Edge Deployments
Kennewick, Washington presents a compelling case for specific workloads, offering some of the lowest power costs in the United States. This market is ideal for companies deploying compute-heavy applications or disaster recovery sites that can benefit from exceptionally low operational expenses. While not a primary interconnection hub, its strategic location in Eastern Washington provides a unique advantage for cost-sensitive infrastructure.
Kennewick: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity but lacks a dense carrier ecosystem or major peering exchanges. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | The nearest major cloud hubs are in Seattle and Portland; access via PNI/wave. |
| Power Cost | $0.048/kWh — as of July 2025 | Extremely low industrial rates driven by a grid dominated by hydroelectric power. |
| Disaster Risk | High (93.22 NRI Score) — as of September 2025 | Elevated risk profile requires careful facility selection and disaster recovery planning. |
| Tax Incentives | Yes | DC-specific sales and use tax exemptions are available for qualifying facilities and tenants. |
| Sales Tax | 6.50% (Washington State) — as of July 2025 | Local taxes may apply on top of the statewide rate. |
Network & Connectivity Ecosystem
The network environment in Kennewick is tailored for regional and edge applications rather than serving as a national interconnection point.
Carrier Density & Carrier Neutrality: The market contains over 3 carriers, as of September 2025. This limited density means connectivity is primarily focused on regional providers, with services extended from larger hubs.
Direct Cloud On-Ramps: There are no direct, native cloud on-ramps within Kennewick data centers. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through network extensions to facilities in Seattle or Portland.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most network peering is handled privately between carriers or routed through the major internet exchanges on the West Coast, primarily the Seattle Internet Exchange (SIX).
Bare Metal: Bare metal server options are available, typically from providers like Hivelocity that can deploy assets to regional edge locations.
Power Analysis
Kennewick stands out for its exceptionally low power costs and renewable-heavy energy grid.
Average Cost Of Power: The industrial electricity rate is approximately $0.048/kWh, as of July 2025. This price is among the lowest in North America, creating a significant advantage for reducing the total cost of ownership for high-density deployments. Washington's power mix is approximately 67% hydroelectric, offering a clean and stable energy source.
Power Grid Reliability: The regional power grid is well-engineered, supported by the massive hydroelectric infrastructure of the Columbia River. This provides a reliable and resilient power source for data center operations.
Market Access, Business & Tax Climate
Kennewick offers strategic access to the inland Northwest and a favorable tax environment for data centers.
Proximity To Key Business Districts: Data centers in the area serve the Tri-Cities region (Kennewick, Pasco, and Richland). This supports key local industries including agriculture, healthcare, and scientific research at the nearby Pacific Northwest National Laboratory.
Regional Market Reach: The market provides a good platform for serving end-users across Eastern Washington and parts of Oregon and Idaho. It functions as an effective edge location for latency-sensitive applications that need to be closer to this population base.
Tax Advantage For Data Centers: Washington provides a significant sales and use tax exemption on the purchase and installation of data center equipment. This incentive also extends to the power used by tenants in qualifying facilities, directly lowering operational expenditures.
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. The environment demands robust infrastructure and business continuity planning. Key risks for the region include earthquake, drought, wildfire, volcanic activity, riverine flooding, and strong wind events.
