Brightlio Blog

As technology advances and data becomes an increasingly valuable commodity, the demand for data centers has skyrocketed. Consequently, a Sacramento data center allows companies to house all their critical data and technology infrastructure in a secure, resilient, and temperature-controlled environment.

With a growing colocation industry, Sacramento is quickly becoming a hub for data center activity in Northern California. To this end, this article explores seven compelling reasons why Sacramento data centers should be on your radar.

Sacramento’s Low-Cost Power Is a Magnet for Data Centers

Sacramento offers some of the lowest power costs in California, making it an attractive location for colocation facilities and potential customers. Compared to the national average of 23 cents/kwh and the average California rate of 29.29 cents/KWh, the average electricity rate in Sacramento is only 15 cents/KWh. This figure is 50% lower than other Californian cities and 34% lower than the national average. 

With a grid capacity of 3,500 megawatts, the Sacramento Municipal Utility District (SMUD) is known as “California’s sweet spot for data centers.” To ensure data centers have consistent power, the SMUD measures distribution reliability via two means: 

• The System Average Interruption Frequency Index (SAIFI) indicates how many outages customers experience in a year.  
• The System Average Interruption Duration Index (SAIDI) measures the average duration of outages customers experience in a year.

Furthermore, Sacramento’s utility company supports data centers in many other ways. For example, SMUD provides a Commercial Custom Incentive and Integrated Design Solutions program that enables data centers to implement energy-efficient measures at a lower cost. The company also offers monetary incentives to help data centers pay for the cost of technology and equipment that improves energy efficiency.

Additionally, Sacramento has implemented numerous reliability projects to build transparency and accountability with its residents. When choosing a colocation facility, businesses can use SMUD’s electricity map to determine the best location for their operations. 

SMUD’s high reliability and low rates provide a stable environment for data centers to keep their operations running, freeing them from concerns about power outages and downtime.

The City Is a Growing Hub for Data Center Activity

Sacramento has become a thriving center for data centers, with a growing number of providers available. Currently, it has 8 data centers and colocation facilities. Among the popular providers in Sacramento are Datacate Inc., Rancho Cordova Data Center, 365 Data Centers, Prime Data Centers, QTS Sacramento Data Centers, and H5 Data Centers. 

As the capital of California, Sacramento is considered one of the country’s top up-and-coming markets for data centers. This emerging industry has created a competitive environment that benefits businesses seeking colocation partners. 

Data Centers in Sacramento Have Access to Robust Fiber Infrastructure

Sacramento’s data centers have access to a reliable network and fiber infrastructure, which is crucial for their operations. The region is home to various telecommunication companies, such as AT&T fiber, Xfinity, Consolidated Communications, Comcast, and Verizon, all providing high-speed internet and fiber optic connections to businesses. 

Furthermore, the city is connected to major metropolitan areas like San Francisco, Oakland, Silicon Valley, Los Angeles, and San Diego through an extensive network of fiber optic cables. The city also hosts multiple cloud providers, including Ceniom Inc., Leverage IT Consulting, Adept solutions, and Fortis Telecom.

Data centers in Sacramento benefit from an inland fiber route that connects the city to Northern California, providing low latency and high-speed internet access. This route passes through Colusa, Corning, Palo Cedro, and Chico, providing 3.2 terabits per second of capacity back to Sacramento. 

Additionally, the state government is expanding broadband infrastructure with a 10,000-mile broadband network. This project aims to provide high-speed internet to residents and businesses within the city.       

Sacramento’s reliable network and fiber infrastructure, along with its excellent connectivity to major metropolitan areas, make it an ideal location for data centers that require fast and dependable internet connections.

Sacramento Provides Affordable Green Energy

The area boasts diverse renewable energy sources, such as hydropower, natural gas, wind, and solar energy. Currently, over 55% of the city’s electric generation is carbon-free. To drive sustainability, the city government plans to achieve total carbon-free electricity by 2030. 

In addition to this, the SMUD Custom Retrofit program incentivizes energy efficiency and electrification projects in existing data centers. Colocation facilities can also receive combined incentives of up to $250,000 for such projects. What’s more, Sacramento plans to switch to 100% sustainable energy by 2030. 

The combination of renewable energy sources helps to keep energy costs low, which is beneficial for data centers that require a significant amount of energy.

The City Has Stable Weather Compared to Other Markets in California

Unlike other parts of California, Sacramento has a relatively moderate natural disaster profile, which makes it an ideal location for data centers. Sacramento’s earthquake, volcano, and tornado index are lower than other parts of California. Despite this favorable weather, the city is still prone to severe flooding.

Sacramento resides at the confluence of the American and Sacramento rivers and is traversed by several stream systems. The city administration provides flood maps and intervention mechanisms to manage this flood risk to businesses and data centers. 

Overall, Sacramento’s weather stability benefits data centers because it helps them maintain uptime and meet their customers’ needs.

Sacramento Is Strategically Located

Sacramento is California’s capital and is considered one of the best places to live in the state. Situated in the center of Northern California, the city is near other global markets like San Francisco and Silicon Valley. The Sacramento region is home to several major highways, including Interstate 5, which runs from Mexico to Canada, and Interstate 80, which connects San Francisco to New York City. 

Additionally, the Sacramento International Airport offers direct flights to major destinations within the United States and worldwide. This prime location makes it an optimal choice for data centers that require connection to customers and partners globally and to those located within the United States. 

Sacramento Has a Thriving Business Environment

Sacramento has a conducive business environment that attracts businesses and investors from all over the world. In this section, we’ll explore how data centers and their customers benefit from Sacramento’s business environment.

Ample Supply of Tech Talent

Sacramento is home to several top universities, including the University of California, Davis, and California State University, Sacramento. These universities offer a steady stream of talented graduates in engineering, computer science, and other related fields that are critical to the success of data centers. 

The city also has an 87% retention rate for first-year university graduates and international students, making it a prime spot for top tech companies. As more people migrate to the city, data centers in Sacramento can leverage this talent pool to fill critical roles and stay ahead of the competition.

Power Support

Data centers in Sacramento can partner with SMUD to maximize energy efficiency. The city has a program where they pay $0.10/kWh for any annual energy savings that result from pre-approved efficiency measures. 

They also pay up to 30% of your project costs or $150,000, whichever is less. This offer allows colocation facilities to comfortably lower their electricity bills for power and cooling.

How Brightlio Can Help With Colocation in Sacramento

Brightlio can help you find a reliable and efficient data center for your business in Sacramento or other locations worldwide. We work with a network of carefully selected data center partners and offer colocation solutions that meet your needs and budget. 

As a telecommunications broker, we also offer a variety of services to meet your technology needs, including cloud solutions, SD-WAN services, network connectivity, and unified communications. We also offer advisory services, including data center consulting.

Reach out to the team today!