Data Centers in Buffalo
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Buffalo, Wyoming – Strategic Low-Risk Colocation
Buffalo, Wyoming offers a compelling location for companies prioritizing low operational costs, attractive tax incentives, and minimal environmental risk. This market is ideal for disaster recovery, backup, and latency-tolerant compute workloads that benefit from a stable, secure, and business-friendly environment. Its infrastructure provides a solid foundation for protecting critical data and ensuring business continuity.
Buffalo, Wyoming: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity suitable for many applications, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Closest on-ramps are in major regional hubs like Denver; private connectivity is available. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Industrial power is competitively priced, supported by a coal and wind-heavy energy mix. |
| Disaster Risk | Low (16.64) – as of September 2025 | Very low exposure to major national disasters, enhancing operational resilience. |
| Tax Incentives | Yes | Multiple data center-specific sales, use, and property tax exemptions are available. |
| Sales Tax | 4.00% (Wyoming) – as of September 2025 | Favorable state sales tax rate, with additional local taxes potentially applicable. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a smaller market, Buffalo has a focused carrier presence, with at least one carrier-neutral facility available as of September 2025. Connectivity is sufficient for regional enterprise needs but does not have the dense ecosystem of a primary hub.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Buffalo. Businesses require private or wavelength connections to major cloud providers, typically accessed through network hubs in Denver.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most network interconnection is handled privately between carriers or routed through the larger regional exchange points in Denver.
Bare Metal: Bare metal server options are available in the region, often provided by national firms that can deploy hardware into local facilities. Providers like ColoCrossing and Hivelocity can serve deployments in secondary markets.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated between $0.07 and $0.09 per kWh as of September 2025. This competitive pricing structure offers significant operational savings for power-intensive deployments. The state's energy mix is dominated by coal (60%) and wind (23%), as of 2024 net generation data.
Power Grid Reliability: The power grid supporting the region is well-engineered for industrial use. Infrastructure is built to handle the demands of the state's energy and mining sectors, providing a stable foundation for data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Buffalo serve local and regional businesses, particularly those in the energy, agriculture, and logistics sectors. The location provides a strategic site for disaster recovery for companies headquartered in the Rocky Mountain region.
Regional Market Reach: Buffalo is well-positioned to serve workloads for Wyoming and adjacent states, including Montana, South Dakota, and Nebraska. It offers a low-latency option for users within this geography who do not require immediate proximity to a Tier 1 market.
Tax Advantage For Data Centers: Wyoming offers substantial tax benefits that directly reduce capital and operational expenditures. Key incentives include sales and use tax exemptions on data center equipment and software, as well as property tax abatements for qualifying projects.
Natural Disaster Risk
Buffalo has a very low natural disaster risk profile, with a FEMA National Risk Index score of 16.64 out of 100 as of September 2025. This score makes it an excellent choice for critical infrastructure and data protection. The primary environmental risks to consider are winter weather, hail, landslide, and wildfire.