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Four Reasons to Bring Your Data Center To IDAHO

7x24 Exchange Magazine Spring 2021 - Four Reasons to Bring Your Data Center To IDAHO

By Megan Ronk

Idaho is one of the fastest-growing states in the country — and it might be the perfect place to build your data center. With low energy costs, a temperate climate, minimal risk of natural disaster and attractive state tax incentives, Idaho makes a great home for data center facilities. That’s especially true across southern Idaho, where Idaho Power provides the added benefits of reliable, clean energy and personal service at prices among the lowest in the nation. Here are the top four reasons to build your data center in Idaho:

Idaho Power provides some of the most reliable electricity in the nation. For more than 100 years, we’ve been a trusted ally to our business customers — including those that are highly sensitive to interruptions. Our energy advisors are available 24/7 to answer questions, work through issues and find ways to save you money through our energy efficiency programs. We strive to create a positive customer experience, and our efforts have been recognized with some of the highest customer satisfaction scores in the industry. With low risks for natural disasters and a mild climate, you can
rest easy knowing your customers’ data is safe and protected from interruptions. No matter what your energy needs are, you can count on Idaho Power for reliable, quality energy — and
personalized service to match.

Idaho is known for its affordable energy. Thanks largely to low-cost hydroelectricity that accounts for nearly half of our energy mix, Idaho Power offers some of the lowest prices in the nation. In fact, our business customers pay 30% less than the national average for electricity. According to data from the Edison Electric Institute, a data center customer using 1,000 kilowatts and 400,000 kilowatt-hours per month in Idaho Power’s service area would expect to pay about $28,000 in monthly energy costs, while a customer using the same amount of energy on the east coast or in California could pay between $66,000 and $94,000 per month. Just think of what your business could do with all that savings!

In 2019, Idaho Power announced a goal to provide 100% clean energy by 2045. Our company has been a clean energy leader for decades, and this goal aligns with our path away from coal-fired energy as well as our carbon emissions reduction targets. In addition to our hydropower facilities, Idaho Power plans to invest in additional wind, solar and other clean energy sources as we pursue a 100% clean energy future, along with transmission infrastructure to move clean energy throughout the West. Idaho Power is also proud to partner with customers on clean energy initiatives, and we can provide a number of renewable energy options — including new, renewable resources — to meet our customers’ needs.

7x24 Exchange Magazine Spring 2021 - Four Reasons to Bring Your Data Center To IDAHO

Data Center-Friendly
Idaho is an increasingly attractive destination for data centers. As of July 1, 2020, new data centers choosing to locate in Idaho are eligible for a sales tax exemption on server equipment as well as construction materials used to build the facility. This new incentive — combined with Idaho Power’s low prices, reliability and clean energy mix — presents a compelling opportunity for data centers looking to site a new project in Idaho. In order to receive the tax exemption, companies must:

  • Create and maintain at least 30 new Idaho jobs within the first two years after beginning operations, paying an average wage at or above the county average where the data center is located.
  • Make a capital investment of at least $250,000,000 within five years after construction begins and be solely devoted to the purpose of providing the data center, or have a separately operated segment of a business solely devoted to the purpose of providing the data center.

To learn more about doing business in Idaho Power’s service area, visit idahopower.com/econdev. To inquire about data center tax incentives, visit commerce.idaho.gov.

Megan Ronk is Business Innovation and Development Director at Idaho Power. She can be reached at mronk@idahopower.com

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