Data Centers in Sheridan
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Sheridan, Wyoming, USA – Low-Risk, Tax-Advantaged Colocation
Sheridan, Wyoming offers a compelling market for companies prioritizing operational stability and cost efficiency. Its extremely low natural disaster risk profile, combined with significant data center-specific tax exemptions, makes it an ideal location for workloads that require high uptime and predictable operating expenses. This market is well-suited for backup and disaster recovery sites, as well as primary infrastructure for businesses not constrained by ultra-low latency requirements to major coastal hubs.
Sheridan, Wyoming, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though not a primary international hub; serves regional needs effectively. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extension to major hubs like Denver via private circuits. |
| Power Cost | $0.07–$0.09/kWh (est.) | Prices are competitive, reflecting a grid with significant coal and wind generation. |
| Disaster Risk | Low (NRI Score: 16.64) | Among the lowest risk profiles in the nation for natural disasters. |
| Tax Incentives | Yes | Wyoming provides multiple sales, use, and property tax exemptions for data centers. |
| Sales Tax | 4.00% (state rate) – as of September 2025 | This rate can be offset by specific data center tax abatement programs. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a smaller regional market, Sheridan has a focused carrier presence. The single data center provides access to over 1 carrier as of September 2025, offering foundational connectivity options.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Sheridan as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through network extensions or private circuits to the nearest major interconnection hub, primarily Denver.
Internet Exchange Points (IXPs): Public peering is not available directly in Sheridan. Most network peering is conducted privately between carriers or routed through the major IXPs in Denver.
Bare Metal: Bare metal server options are available, typically deployed on-demand within the local data center. Providers like Hivelocity or phoenixNAP can service the region, often building out capacity based on customer requirements.
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 allows businesses to achieve lower operational costs for power-intensive compute and storage infrastructure.
Power Grid Reliability: Wyoming's power grid is well-engineered, drawing from a diverse generation portfolio dominated by coal and wind. The infrastructure supporting the Sheridan market is built to serve industrial needs, providing reliable energy delivery for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: The data center in Sheridan serves local and regional businesses in sectors like energy, agriculture, and public services. Its location provides low-latency connectivity for operations within Wyoming and neighboring states.
Regional Market Reach: From Sheridan, digital services can effectively reach markets across the Mountain West region, including Montana, North Dakota, South Dakota, and northern Colorado. It serves as a strategic point of presence for content delivery and application hosting targeting this geography.
Tax Advantage For Data Centers: Wyoming offers substantial tax benefits that directly reduce capital and operational expenses. The state provides sales and use tax exemptions on data center equipment and software, along with potential property tax abatements, making it one of the most financially attractive states for infrastructure investment.
Natural Disaster Risk
Sheridan has a very low natural disaster risk profile, with a FEMA National Risk Index score of 16.64 as of September 2025. This minimizes the threat of environmental disruptions to data center operations. The primary risks for the area are identified as cold waves, hail, landslides, wildfires, and winter weather. The region has a negligible risk of catastrophic events like earthquakes, hurricanes, or coastal flooding.
