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Data Centers in Seattle

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Seattle – Your Gateway to the Pacific Northwest & Asia

Seattle is the primary interconnection and cloud hub for the Pacific Northwest, offering exceptional connectivity to Asia-Pacific markets. For businesses requiring low-latency access to major cloud providers and a dense network ecosystem, Seattle provides a strategic advantage with the significant benefit of very low-cost, sustainable power. This combination directly supports scalable, high-performance applications and international reach.

Seattle: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+A top-tier North American market with extensive fiber and direct subsea cable access.
Direct Cloud On-RampsOver 4 – as of September 2025Direct, private connections are available to AWS, Microsoft Azure, and IBM Cloud.
Power Cost$0.05/kWh (industrial) – as of September 2025Among the lowest power costs in the United States, dominated by hydropower.
Disaster RiskHigh (93.22) – as of September 2025Primary risks are earthquake and volcanic activity; facilities are engineered accordingly.
Tax IncentivesYesState-level sales and use tax exemptions are available for qualifying data centers.
Sales Tax6.50% (Washington State) – as of September 2025Local taxes may apply in addition to the statewide sales tax rate.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: With over 60 network providers present, Seattle offers a competitive and resilient connectivity landscape as of September 2025. The market is defined by its rich concentration of carrier-neutral facilities, particularly in the downtown Seattle area and the Sabey Intergate campus in Tukwila.

Direct Cloud On-Ramps: The Seattle market features over 4 dedicated cloud on-ramps serving 12 cloud regions as of September 2025. This allows for secure, low-latency private connections directly to major hyperscalers, including:

  • AWS
  • Microsoft Azure
  • IBM Cloud

Internet Exchange Points (IXPs): The Seattle Internet Exchange (SIX) is one of the most successful and active non-profit IXPs in the world. It provides a primary point for hundreds of networks to exchange traffic, lowering costs and improving performance for all participants.

Bare Metal: Bare metal cloud options are widely available from multiple providers in the Seattle market. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Average Cost Of Power: Seattle offers one of the most attractive power markets in North America. Industrial electricity rates are approximately $0.05/kWh as of September 2025. This exceptionally low cost is a direct result of a power mix dominated by about 67% hydroelectric generation, offering both savings and sustainability.

Power Grid Reliability: The power grid serving the primary data center zones in Seattle and Tukwila is well-engineered, with significant redundancy. Major colocation facilities are supported by multiple substations, ensuring high levels of uptime and fault tolerance for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Seattle's data centers are strategically located to serve the region's massive technology and enterprise sectors, including the headquarters of Amazon and Microsoft. Key facilities in downtown Seattle and nearby Tukwila provide low-latency connectivity to these core business hubs.

Regional Market Reach: As the largest metropolitan area in the Pacific Northwest, Seattle is the central hub for serving businesses and end-users across Washington, Oregon, Idaho, and Western Canada. Its extensive subsea cable connections also make it a critical gateway for traffic to and from Asia.

Tax Advantage For Data Centers: Washington provides a significant sales and use tax exemption for the purchase and installation of data center equipment. This incentive lowers the total cost of ownership for both data center operators and their tenants, making the region more financially competitive.

Natural Disaster Risk

Seattle has a High natural disaster risk profile, with a FEMA National Risk Index score of 93.22 as of September 2025. While the overall score is high, it is driven by specific, well-understood geological factors.

The primary risks for the region are earthquakes, volcanic activity (from nearby Mount Rainier), and winter weather. Other notable risks include wildfires, landslides, and flooding. Data centers in the market are engineered to modern seismic codes to mitigate the primary earthquake risk.

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