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How Do Portland Colocation Costs Compare to Pacific Northwest Averages?

How Do Portland Colocation Costs Compare to Pacific Northwest Averages?When considering a colocation, multi-tenant, data center for your business, one must consider the stability, expansion availability, customer service and, of course, the pricing of the data center

There are a couple different ways colocation providers will charge for their services:

  • By Space (square footage) + Power (by circuit, by kilowatt, or by usage)
  • By Power Only (all in per kilowatt) – this is a common pricing structure used in the wholesale market
  • By the Footprint – this combines space and power pricing based on kilowatt density 

The prices of colocation providers vary greatly in different cities across the United States. For instance, data centers in Boston are among the highest prices in the U.S. while Atlanta is one of the least expensive areas to have a colocation data center

Portland colocation providers are ranked as one of the 5 least expensive data centers in the U.S.; in fact, it is less expensive to have a data center in Portland then other colocation providers around the Pacific Northwest, but why is that? 

A couple of the main factors that determine the pricing of data centers are space and power. Local colocation providers are very reasonably priced in both of these due to the fact that Oregon offers tax breaks and low fuel costs.

Taxes for Portland Businesses

State property exemptions and no state sales tax attract many large data centers to Oregon. In fact, Facebook, Google, Apple, and Amazon all have huge data centers just outside of Portland. 

This area’s businesses also enjoy enterprise zones, in which the government gives various financial breaks to businesses such as tax benefits, special financing, and other incentives designed to encourage businesses to become established in this area. These financial benefits can save data centers tens of millions of dollars every year. 

Portland is beginning to nurture the technology companies, perhaps giving your data center another incentive to move to this area.

Portland Colocation Providers and Energy Expense

Power just may be the single largest expense data centers incur. Because of this, finding a location that has low fuel expenses is ideal. Besides being one of the most economical and environmentally friendly utility companies, Portland General Electric (PGE) ranks as one of the highest subset groups in the U.S., with no outages for the last 15 years. 

Colocation providers that work in conjunction with the utility companies from the start can experience long-term savings, from choosing wise cooling options and reducing long-term energy bills, to reducing the need for upgrades in the near future. 

Many data centers use several redundant energy sources to ensure little to no downtime due to a power outage. If the power is momentarily interrupted, the backup gas, diesel, or propane generators will automatically take over and keep the system running. 

Portland Colocation Costs and Those of the Pacific Northwest

When looking at costs of data centers across the Pacific Northwest, a Portland colocation provider may be one of the least expensive centers. Low energy prices and enticing tax incentives draw many large and small data centers to this area, giving customers an array to choose from. 

Are your colocation expenses in Portland less than your other locations? Let us know why that is in the Comments box below.


And if you need to lease up new clients for your Portland colocation facility, be sure to download your free copy of Lead Generation Best Practices for Colocation Data Centers.

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