Data Centers in Wenatchee

Wenatchee, Washington – Ultra-Low-Cost Power & Tax Incentives

Executive Summary

Wenatchee is a specialized data center market built for organizations that prioritize low operational costs above all else. Its primary advantage is access to some of the cheapest and greenest power in North America, derived almost entirely from hydropower. This makes it a compelling choice for high-performance computing, cryptocurrency mining, and large-scale service provider deployments where power consumption is the dominant operating expense.

Wenatchee, Washington: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market provides access to over 5 carriers, as of September 2025. While not as dense as primary markets, Wenatchee has sufficient long-haul fiber capacity to support large-scale operations connecting back to major West Coast hubs. Carrier-neutral facilities are available, offering a choice of providers.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Wenatchee. Businesses requiring dedicated cloud access must establish private network connections (PNI or wave) to interconnection hubs in Seattle to reach providers like AWS, Google Cloud, and Microsoft Azure.

Internet Exchange Points (IXPs): The region does not host any major public internet exchanges. Most peering is conducted privately between carriers or accomplished by backhauling traffic to the Seattle Internet Exchange (SIX).

Bare Metal: Bare metal server options are available from providers operating within the local data centers. These services, offered by companies like Hivelocity and ColoCrossing, capitalize on the region's low power costs to deliver cost-effective compute capacity.

Power Analysis

Average Cost Of Power: The average industrial electricity rate in Wenatchee is approximately $0.048/kWh, as of September 2025. This extremely competitive pricing provides a significant and sustainable cost advantage for any power-intensive IT workload. The grid is sourced primarily from ~67% hydropower, ensuring cost stability and a renewable energy supply.

Power Grid Reliability: The power grid supporting the Wenatchee area is well-engineered and benefits from the massive, stable output of the Columbia River hydroelectric system. Local data centers are typically supported by redundant power feeds from separate substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Wenatchee serves as a strategic, low-cost colocation site for West Coast technology companies. It is an effective alternative to the more expensive and power-constrained markets of Seattle and Silicon Valley for workloads that can tolerate slightly higher latency.

Regional Market Reach: From Wenatchee, organizations can effectively serve the entire Pacific Northwest. Its location provides a solid platform for disaster recovery sites for businesses with primary operations in Seattle or Portland.

Tax Advantage For Data Centers: Washington offers a valuable sales and use tax exemption for the construction and outfitting of data centers. This incentive directly lowers the capital expenditure required for building new facilities or purchasing servers, storage, and networking equipment.

Natural Disaster Risk

Wenatchee has a high natural disaster risk profile, with a FEMA National Risk Index score of 93.22, as of September 2025. While the risk of any single event remains statistically low, the area is exposed to several significant geological and environmental threats.

The primary risks for data center operations include earthquake, wildfire, volcanic activity, riverine flooding, and landslide. Facility selection, construction standards, and disaster recovery planning are critical components for mitigating these regional hazards.