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With over 30 data centers, Oregon is a great state to consider when looking for retail colocation providers. This Pacific state provides the necessary infrastructure data centers and their customers require to succeed.

This guide examines five primary reasons businesses should choose Oregon data centers for their colocation needs.

Oregon Has a Well-Established Data Center Industry

The Oregon data center market ranks seventh in the United States and strongly competes with other tier-1 markets like Phoenix and Los Angeles. The state has over 30 data centers and over 355 megawatts of multi-tenant commissioned power for colocation. Many of the data centers in Oregon reside near Portland, with the suburb of Hillsboro in incredibly high demand. Hillsboro saw the biggest supply increase of all North American markets in 2022, with a 27% power capacity rise.

Currently, there are 18 colocation facilities and 15 providers in Oregon. Popular data centers in Oregon include Hillsboro Data Center (8135 Northeast Evergreen Parkway, Hillsboro), Digital Realty (6675 NE 62nd Ave Data Center), and QTS Hillsboro Data Center (4951 Northeast Huffman Street, Hillsboro).

A robust ecosystem of suppliers, contractors, and service providers supports Oregon’s thriving data center industry. As a result of this ecosystem, businesses have a variety of data centers from which to choose.

Data Centers in Oregon Offer Numerous Connectivity Options

Oregon is an attractive location for data centers because of its robust fiber network and internet infrastructure that spans the entire state. Many fiber optic backbones have diverse routing that delivers reliable, high-speed digital services to data centers nationwide. The state has over 70 internet providers giving businesses plenty of access to competitive connectivity.

Oregon’s top five internet providers include Spectrum, CenturyLink, Xfinity, Viasat, and HughestNet. Additionally, the state is home to several major fiber optic routes, including the transpacific fiber route, which connects Asia with the United States. 

The state government developed an Infrastructure Investment and Jobs Act to improve internet capacity and generate more investment into its network infrastructure.

Oregon also has several major cloud provider availability zones, including Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. These cloud providers offer a wide range of services, including storage, computing, and analytics, making Oregon a hub for cloud computing. Oregon’s network infrastructure is a competitive advantage for customers looking for colocation services.

Colocation Facilities in Oregon Enjoy Reliable, Cheap Power

Another major factor that makes Oregon an excellent location for data centers and colocation facilities is the availability of reliable and affordable power. In fact, Oregon has the most reliable power grid in the United States.

Average electricity rates in Oregon are between 6 to 11 cents per KWh, which is much lower than the national average of 12.50 cents per KWh. Oregon has the 12th lowest industrial electricity rates of the 50 states. Electricity rates are a primary driver of colocation costs, making Oregon a more cost-effective location for data centers.

The state also has over 15 energy facilities that support the data center industry and its customers. Hydroelectricity provides the bulk of the state’s power supply, followed by coal and natural gas.

In addition to its hydroelectric plants, Oregon also relies on a steady supply of alternative energy sources like wind, biomass, and sunlight. The state government introduced Oregon’s Renewable Portfolio Standard in pursuing renewable energy. The bill requires that at least 50% of Oregon’s electricity come from renewable energy by 2040. 

Data centers and colocation facilities can meet sustainability goals by accessing Oregon’s affordable and clean energy sources.

Data Centers in Oregon Have Access to Top Tech Talent

Oregon has a robust tech industry and a talented pool of tech professionals. The state is home to several prestigious universities, making it a hub for academic excellence and data innovation in the Pacific Northwest. 

One of the most notable institutions is the University of Oregon, which is located in Eugene, just a few hours south of Portland. This public research university offers computer and engineering programs. 

Portland is also home to a number of other well-respected colleges and universities, including Portland State University and Oregon State University, both of which offer research programs in data management and manipulation.

The presence of these institutions ensure that data center operators in Oregon have access to a skilled workforce that can help drive innovation and growth.

Oregon Has a Supportive Business Environment

Oregon provides several business incentives that data centers can take advantage of. In this section, we’ll explore each factor in greater detail. 

Data Center Business Support

The Department of Administrative Services (DAS) exclusively regulates and supports data centers within the state. The DAS mode of operation is heavily business-centric. As a result, the department ensures that only crucial business needs drive decisions regarding the IT industry. 

This governmental structure allows the state to build an environment where colocation facilities thrive.

Tax Breaks 

One of the most significant benefits of operating a data center in Oregon is the state’s tax incentive program. The Oregon Enterprise Zone Program offers tax breaks for eligible data center projects, including exemptions from property taxes on equipment and infrastructure for up to 15 years. 

This tax incentive has attracted several large data center operators to the Portland area, including Facebook and Google.

Additional Business Support

Oregon’s business environment is favorable, with several initiatives promoting business growth and development. The state has invested in infrastructure projects to support business expansion, including high-speed broadband networks and transportation improvements. 

Moreover, Oregon has a streamlined permitting process that helps businesses get up and running quickly, with minimal red tape.

Oregon’s commitment to infrastructure development and business growth ensures that data centers can thrive and remain competitive. As a result, Oregon has emerged as a leading destination for data centers, attracting major tech companies and driving economic growth in the state.

Why Should You Choose a Data Center Market With Reliable Network Infrastructure?

Choosing a location with reliable fiber network infrastructure is critical for the following reasons:

• Redundancy: Reliable fiber network infrastructure can provide redundancy and backup connections in case of network failures or outages. This redundancy ensures that data centers can continue operating without disruptions, even if there are issues with the primary network connection.
• Scalability: As data centers grow and expand, they require more bandwidth to handle increasing data traffic. A location with reliable network infrastructure can provide the necessary scalability colocation facilities need to meet their customers’ growing demands.
• Connectivity: High-speed connectivity allows colocation facilities to transmit data between locations without delays or disruptions. A robust fiber network ensures that applications and services run smoothly and data is available to users when needed.

The Bottom Line: How Can Brightlio Help?

At Brightlio, we provide colocation solutions in Portland, Oregon, Hillsboro, Oregon, and nationwide. Our team of experts partners with top-tier data centers to deliver retail colocation services that match your needs and budget.

Along with colocation services, we offer cloud solutions, network connectivity, and unified communications services, providing comprehensive technical services for your business. 

Are you seeking the right colocation partner in Oregon for your data center requirements? Reach out to Brightlio today to get started! 

Learn more about colocation with Brightlio’s guides to other US states:

• California Data Centers: Brightlio’s Ultimate Guide to Colocation in the Golden State
• Data Centers in Connecticut: Six Reasons to Colocate in the Constitution State
• Data Centers in Florida: Colocation in the Sunshine State
• The Iowa Data Center Market: Colocation In America’s Heartland
• The Ohio Data Center Advantage
• Data Centers in Massachusetts: Six Reasons to Colocate in the Bay State
• Data Centers in Maryland: Innovation in The Old Line State
• New Jersey Data Centers: Powering the Digital Future of the Garden State
• Data Centers in New York: The Gateway to Colocation in the Empire State
• Data Centers in Texas: Colocation in the Lone Star State
• Data Centers in Northern Virginia: Brightlio’s Guide to Colocation in the Mid-Atlantic