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Data Centers in Spokane

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Spokane – Power-Rich and Cost-Effective Colocation

Spokane offers a compelling market for workloads that require low-cost, sustainable power and a favorable tax environment. The region's infrastructure is well-suited for organizations building out disaster recovery sites or serving the broader Pacific Northwest, leveraging some of the lowest industrial power rates in the United States.

Spokane: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong regional connectivity supported by multiple fiber providers.
Direct Cloud On-Ramps0 – as of September 2025The nearest major cloud hubs are in Seattle, accessible via private network extensions.
Power Cost$0.048/kWh – as of September 2025Driven by a grid dominated by low-cost, renewable hydroelectric power (~67%).
Disaster RiskHigh (93.22) – as of September 2025Main risks are non-systemic; primary concerns include winter weather, wildfire, and earthquake.
Tax IncentivesYesWashington provides a sales and use tax exemption for qualifying data centers and tenants.
Sales Tax6.50% – as of September 2025State-level sales tax; local additions may apply.

Network & Connectivity Ecosystem

Spokane's connectivity is strong for a market of its size, providing reliable access to the Pacific Northwest and beyond.

Carrier Density & Carrier Neutrality: Spokane is served by over 8 unique network providers, with fiber routes connecting to major hubs like Seattle and Portland, as of September 2025. The market features carrier-neutral facilities that offer diverse network options.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Spokane data centers, as of September 2025. Secure, low-latency connections to all major cloud providers are achieved via private network links to the primary cloud hub in Seattle.

Internet Exchange Points (IXPs): Public peering is limited within Spokane. Most interconnection occurs through private peering arrangements inside local data centers or by connecting to the Seattle Internet Exchange (SIX) in the Seattle metro area.

Bare Metal: Bare metal server options are available in the broader region, with providers like Hivelocity offering services that can be connected to Spokane-based infrastructure.

Power Analysis

Spokane is one of the most cost-effective and sustainable power markets in North America, making it a top choice for power-intensive computing.

Average Cost Of Power: The average industrial electricity rate is approximately $0.048/kWh, as of September 2025. This extremely low cost directly reduces the total cost of ownership for colocation and large-scale deployments. The power mix is dominated by approximately 67% hydroelectric generation, offering a stable and renewable energy source.

Power Grid Reliability: The regional power grid is well-engineered, benefiting from significant investment in hydroelectric infrastructure. Data centers in the area are supported by redundant power feeds and reliable utility services, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Spokane's strategic location and favorable business environment make it an attractive secondary data center market.

Proximity To Key Business Districts: Data centers in Spokane serve the city's growing healthcare, finance, and logistics sectors. Its location provides a strategic East Washington hub for enterprises operating throughout the Inland Northwest.

Regional Market Reach: Spokane effectively serves Eastern Washington, Northern Idaho, and Western Montana. It is also an ideal disaster recovery location for businesses with primary infrastructure in the Seattle metropolitan area, offering geographic diversity while remaining within the same state.

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 dramatically lowers the upfront capital expenditure required to build or expand a data center footprint.

Natural Disaster Risk

Spokane has a High natural disaster risk profile, with a FEMA National Risk Index score of 93.22 out of 100, as of September 2025. While the overall score is high, the primary risks are manageable and geographically specific.

Key risks for the region include severe winter weather, drought, wildfire, and earthquake. Other notable risks are landslide, riverine flooding, and strong winds. The risk profile lacks threats from hurricanes or coastal flooding, making it a suitable location for disaster recovery infrastructure for West Coast operations.

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