Data Centers in Sheridan
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Sheridan, Wyoming, United States – Reliable Power in a Low-Risk Location
Sheridan, Wyoming offers a specialized market for businesses prioritizing operational stability and low natural disaster risk. Its primary appeal is for workloads that require resilient, low-cost power in a secure geographic location, rather than those dependent on ultra-low latency to major metropolitan hubs.
Sheridan, Wyoming, United States: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but limited long-haul fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Denver; private connections can extend access. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Driven by a high concentration of coal and wind in the state's energy mix. |
| Disaster Risk | Low (NRI Score: 16.64) – as of September 2025 | Very low overall risk score from FEMA, enhancing operational resilience. |
| Tax Incentives | Yes | Wyoming provides sales, use, and property tax exemptions for qualifying data centers. |
| Sales Tax | 4.00% (State Rate) – as of September 2025 | A competitive state sales tax rate contributes to lower operational costs. |
Network & Connectivity Ecosystem
Sheridan is a niche market with a focused connectivity profile. While it lacks the density of major hubs, it provides sufficient infrastructure for targeted deployments.
Carrier Density & Carrier Neutrality: The market contains a limited number of providers, with at least 1 carrier present as of September 2025. Carrier neutrality is available, allowing for interconnection, but the ecosystem is not as dense as in primary markets.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps in Sheridan. Businesses requiring dedicated cloud access must connect to providers in the nearest major hub, such as Denver, through private network extensions or wavelength services.
Internet Exchange Points (IXPs): Public peering is not available directly within Sheridan. Most network peering is handled privately or routed through major regional exchanges in cities like Denver or Salt Lake City.
Bare Metal: Bare metal server options are available, typically through providers that serve edge or regional markets. Services from providers like Hivelocity or ColoCrossing can be deployed to support local compute needs.
Power Analysis
Wyoming is defined by its abundant energy resources, which translates into reliable and cost-effective power for data center operations.
Average Cost Of Power: Industrial electricity rates are estimated to be between $0.07 and $0.09 per kWh as of September 2025. This competitive pricing, supported by a grid dominated by coal (60%) and wind (23%), makes Sheridan an attractive location for managing power-intensive workloads.
Power Grid Reliability: The regional power grid is well-engineered to support industrial operations. The infrastructure is built for stability, serving the state's significant energy and mining sectors, which benefits data center uptime.
Market Access, Business & Tax Climate
Sheridan provides a stable business environment with significant financial incentives, though its market reach is regional.
Proximity To Key Business Districts: The data center market in Sheridan serves local government, agriculture, and energy-sector businesses. Its location is strategic for organizations operating within Wyoming and the northern Rocky Mountain region.
Regional Market Reach: From Sheridan, businesses can effectively serve users across Wyoming, southern Montana, and western South Dakota. It is a suitable location for disaster recovery sites or for applications that are not latency-sensitive to coastal population centers.
Tax Advantage For Data Centers: Wyoming offers compelling tax incentives that directly reduce capital and operational expenses. The state provides sales and use tax exemptions on data center equipment and software, along with property tax abatements for qualifying projects.
Natural Disaster Risk
Sheridan has a very low risk profile for natural disasters, making it an excellent choice for mission-critical infrastructure requiring high availability. The FEMA National Risk Index score is 16.64 out of 100, categorizing it as a "Very Low" risk location as of September 2025.
The primary environmental risks are:
- Cold Wave
- Hail
- Landslide
- Wildfire
- Winter Weather
