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Spokane – Resilient Low-Latency Edge to the Northwest

Executive Summary

Spokane serves as the premier secondary market for organizations requiring geographic separation from Seattle without compromising performance for Pacific Northwest users. Leveraging low-cost hydroelectric power and a concentrated cluster of 11 data centers, the region provides a secure, cost-effective environment for disaster recovery and regional edge deployments.

Spokane: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAReliable regional hub for the Inland Northwest.
Direct Cloud On-Ramps0 – as of September 2025Nearest major hub is Seattle via private transport.
Power CostIndustrial electricity: $0.05/kWh, as of September 2025Primary source is hydroelectric generation.
Disaster RiskHigh (93.22 score), as of September 2025High percentile for regional natural hazards.
Tax IncentivesYesSales and use tax exemption for data centers.
Sales Tax6.50% Washington sales tax, as of September 2025Standard state level tax rate.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As of September 2025, the market supports over 8 providers. This ecosystem includes a mix of regional telecommunications firms and national carriers, offering reliable paths for diverse network routing and localized redundancy.

Direct Cloud On-Ramps: There are 0 direct on-ramps to major cloud providers as of September 2025. Enterprises typically reach cloud regions in Seattle to access AWS, Google Cloud (GCP), or Microsoft Azure via high-capacity private transport or dedicated wavelengths.

Internet Exchange Points (IXPs): Public internet exchange presence is limited within the immediate metro area as of September 2025. Most local peering is handled through private interconnects or by linking to larger exchanges in Seattle to maintain efficient traffic flow.

Bare Metal: Infrastructure as a Service and bare metal options are available through providers like phoenixNAP and Hivelocity as of September 2025. These services offer dedicated hardware for workloads that require high performance and low latency.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at $0.05/kWh as of September 2025. This rate is significantly lower than the national average, providing a clear operational advantage for high-density computing and large-scale colocation deployments.

Power Grid Reliability: The local grid is exceptionally reliable and supported by a power generation mix that is 67% hydroelectric as of September 2025. Facilities benefit from well-engineered infrastructure and redundant utility feeds from multiple substations to ensure consistent uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated near downtown Spokane and the Liberty Lake area as of September 2025. This placement provides immediate proximity to the region’s growing technology, healthcare, and finance sectors, allowing for low-latency connections to local corporate headquarters.

Regional Market Reach: Spokane is the primary service hub for Eastern Washington, Northern Idaho, and Western Montana. Its position allows businesses to serve a broad inland Northwest population while acting as a vital link between the coastal tech hubs and the interior United States.

Tax Advantage For Data Centers: Washington offers a significant financial benefit through sales and use tax exemptions for qualifying data center equipment and server installations. This program effectively reduces the total cost of ownership for both facility operators and their tenants.

Natural Disaster Risk

The FEMA National Risk Index identifies Spokane with a score of 93.22, which is categorized as High as of September 2025. While the region is inland and protected from coastal threats, it faces specific environmental considerations.

  • Wildfire: Significant regional risk during dry seasons.
  • Winter Weather: Frequent heavy snow and ice events.
  • Strong Wind: Occasional high-wind events impacting local infrastructure.
  • River Flooding: Risks associated with the Spokane River basin.
  • Volcanic Activity: Indirect regional risk due to proximity to the Cascade Range.

Other risks such as landslides and lightning are present but considered less frequent. Organizations address these through purpose-built facility hardening and redundant HVAC systems.

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