Data Centers in Wenatchee
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Wenatchee – Low-Cost Power in the Pacific Northwest
Executive Summary
Wenatchee, Washington is a compelling market for workloads that are power-intensive but not latency-sensitive. Its key advantage is access to some of the lowest-cost, hydro-generated electricity in North America. This makes it a prime location for high-performance computing, cryptocurrency mining, and large-scale data archival, maximizing operational efficiency.
Wenatchee: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Closest on-ramps are in Seattle. Private network extensions are available. |
| Power Cost | $0.048/kWh – as of September 2025 | Extremely low industrial power rates driven by a high percentage of hydropower. |
| Disaster Risk | High (93.22) – as of September 2025 | Elevated risk profile requires careful site selection and facility engineering. |
| Tax Incentives | Yes | Data center-specific sales and use tax exemptions are available for qualifying facilities. |
| Sales Tax | 6.50% (Washington State) – as of September 2025 | Local taxes may increase the final rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Wenatchee has over 5 network providers available as of September 2025. While not as dense as major hubs like Seattle, the market offers sufficient options for redundancy and competitive pricing within its single colocation facility.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps in Wenatchee as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via network links to the primary regional hub in Seattle.
Internet Exchange Points (IXPs): Public peering is not a feature of the Wenatchee market. Interconnection is typically handled through private peering arrangements or by routing traffic through major IXPs in Seattle.
Bare Metal: Bare metal server options are available in the region, primarily through providers located in the Seattle metropolitan area. Services from companies like Hivelocity and phoenixNAP can be connected to Wenatchee infrastructure.
Power Analysis
Average Cost Of Power: The industrial electricity rate in Wenatchee is approximately $0.048/kWh as of September 2025. This exceptionally low cost, driven by a grid dominated by about 67% hydroelectric power, provides a significant operational expense advantage for high-density deployments.
Power Grid Reliability: The power grid, managed by the Chelan County PUD, is known for its stability. The infrastructure benefits from the massive hydroelectric projects on the Columbia River, providing a consistent and reliable power source for data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Wenatchee primarily serve the agricultural and technology sectors of Central Washington. The low power cost also attracts national clients for specialized high-performance computing (HPC) and archival workloads.
Regional Market Reach: While not a primary hub for low-latency applications, Wenatchee effectively serves businesses throughout Central and Eastern Washington. It offers a cost-effective disaster recovery location for companies with primary operations in the Seattle area.
Tax Advantage For Data Centers: Washington provides a significant sales and use tax exemption on the purchase and installation of data center equipment for qualifying facilities. This incentive dramatically lowers the initial capital expenditure required to build or expand a data center.
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. The primary risks for data center operations are environmental and geological. Key hazards include earthquake, wildfire, volcanic activity from nearby Cascade Range volcanoes, and avalanche or landslide risk in the surrounding terrain. Other notable risks are winter weather, strong wind, and drought conditions.
