Data Centers in Douglas
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Douglas, Wyoming – Secure, Low-Cost Colocation
Executive Summary
Douglas, Wyoming is an ideal market for companies prioritizing low operational costs, significant tax advantages, and minimal environmental risk for their data center assets. This location is purpose-built for workloads that are not latency-sensitive, offering a stable and secure environment for disaster recovery, archival, and large-scale compute. The financial benefits, driven by aggressive state-level tax incentives, make it a compelling choice for capital-intensive deployments.
Douglas, Wyoming: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A secondary market with reliable but not densely interconnected network infrastructure. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Denver; private network extensions are required. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Based on a grid dominated by coal (60%) and wind (23%) as of 2024. |
| Disaster Risk | Very Low (16.64) – as of September 2025 | Exceptionally low exposure to most major natural perils, enhancing physical security. |
| Tax Incentives | Yes | Multiple DC-specific incentives including sales, use, and property tax exemptions. |
| Sales Tax | 4.00% (state) – as of 2025 | Wyoming has one of the lowest sales tax rates in the United States. |
Network & Connectivity Ecosystem
Douglas is a niche market where connectivity is planned and deliberate rather than organically dense. Infrastructure is built for purpose, not for broad interconnection.
Carrier Density & Carrier Neutrality The market has limited local carrier density, with a single primary provider noted as of September 2025. Connectivity must be architected specifically for the facility, often involving long-haul connections to major carrier hotels in cities like Denver.
Direct Cloud On-Ramps There are no direct public cloud on-ramps in Douglas. Businesses require dedicated network connections, such as PNI or wavelength services, to reach cloud provider fabrics in the nearest major hub, Denver.
Internet Exchange Points (IXPs) No public Internet Exchange Points are present in Douglas. Peering is handled privately between carriers or routed through larger regional exchanges in Denver, which serves as the primary interconnection point for the Rocky Mountain region.
Bare Metal Bare metal server options are not readily available locally. Deployments are typically sourced from providers with a presence in larger regional markets, such as phoenixNAP, which can service the area from its Denver or Phoenix data centers.
Power Analysis
Wyoming's energy profile offers predictable costs and a stable grid, supported by the state's vast natural resources.
Average Cost Of Power Industrial electricity rates are estimated between $0.07 and $0.09 per kWh as of 2024. This competitive pricing is a direct result of a power mix heavily weighted toward low-cost coal and wind generation, reducing long-term operational expenses.
Power Grid Reliability The power grid is engineered for industrial use and is considered highly reliable. The infrastructure is robust, designed to support the state's significant energy production and mining industries, ensuring stable power for data center operations.
Market Access, Business & Tax Climate
The business climate in Wyoming is one of the most favorable in the nation, with a strong focus on attracting technology and industrial investment through aggressive tax policy.
Proximity To Key Business Districts Douglas is not positioned as an edge location for a major metropolitan area. Its strategic value comes from its remote, secure setting, making it suitable for backup data centers and applications where physical security and low operating costs are paramount.
Regional Market Reach From Douglas, services can effectively reach across the Rocky Mountain states. However, it is primarily a destination for specific workloads rather than a central hub for low-latency content delivery to large populations.
Tax Advantage For Data Centers Wyoming provides some of the most powerful data center tax incentives in the country. The state offers sales and use tax exemptions on data center equipment, software, and power, which substantially lowers the upfront capital cost of building or expanding a facility.
Natural Disaster Risk
Douglas, Wyoming, has a very low natural disaster risk profile, with a FEMA National Risk Index score of 16.64 as of September 2025. This makes it one of the safest locations in the United States for critical infrastructure. The primary environmental risks are manageable and largely related to weather. Key hazards include winter weather, cold waves, hail, landslides, and wildfires. The risk of seismic, hurricane, or widespread flooding events is negligible.
