Data Centers in Sheridan

Sheridan, Wyoming – Cost-Effective and Secure Colocation

Sheridan presents a strategic option for organizations prioritizing low operational costs and high physical security. Its combination of aggressive tax incentives, low-cost power, and minimal natural disaster risk makes it an ideal location for disaster recovery, data archiving, and workloads that are not latency-sensitive. This market is built for businesses looking to optimize their total cost of ownership while ensuring long-term operational stability.

Sheridan, Wyoming: At A Glance

Network & Connectivity Ecosystem

Sheridan is an emerging edge market. While it lacks the dense connectivity of a primary hub, its infrastructure is sufficient for backup, disaster recovery, and certain high-performance compute applications where latency to end-users is not the primary driver.

Carrier Density & Carrier Neutrality: The market features a focused set of local and regional providers, with 1 provider reported as of September 2025. Carrier-neutral facilities provide the primary access point to national networks.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Sheridan as of September 2025. Secure, private connections to AWS, Google Cloud, Microsoft Azure, and other major clouds are achieved via dedicated circuits to network hubs in Denver.

Internet Exchange Points (IXPs): Public peering is not available locally. Peering is handled privately between carriers or managed through network providers with a presence in regional hubs like Denver.

Bare Metal: Bare metal server options are available, typically through providers that specialize in edge deployments and can build out capacity on demand. Services from providers like Hivelocity can be deployed to serve workloads in the region.

Power Analysis

Wyoming's energy profile is a key advantage for data center operators, defined by low costs and a grid built for heavy industrial loads.

Average Cost Of Power: Expect industrial power rates in the range of $0.07 - $0.09/kWh, as of September 2025. This cost structure provides a substantial long-term operating expense advantage compared to most U.S. markets. The state's energy mix is dominated by coal and wind generation.

Power Grid Reliability: The power grid is engineered to support the state's significant energy and mining industries, resulting in a stable and reliable power supply for high-load data center operations.

Market Access, Business & Tax Climate

Wyoming's business environment is one of the most favorable in the nation, with a clear strategy to attract technology investment through financial incentives.

Proximity To Key Business Districts: Data centers in Sheridan serve local government and regional businesses. The location is also used as a remote, secure site for companies headquartered in the Front Range Urban Corridor, including Denver and Cheyenne.

Regional Market Reach: Sheridan provides effective geographic separation for disaster recovery plans for businesses operating throughout the Rocky Mountain region, from Colorado to Montana.

Tax Advantage For Data Centers: Wyoming provides data center operators with significant tax exemptions on sales, use, and property taxes for computing equipment and software. These incentives directly reduce the upfront capital expenditure required for new deployments and technology refreshes.

Natural Disaster Risk

Sheridan 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 minimizes the threat of environmental disruptions to operations and reduces insurance costs. Key risks are manageable and primarily weather-related.

• Cold Waves
• Hail
• Landslides
• Wildfire
• Winter Weather