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Data Centers in Nebraska

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Nebraska – Centralized Stability and Low Operational Costs

Nebraska is the strategic choice for enterprises requiring a stable, central North American footprint with minimal overhead. It offers a rare combination of public power reliability and aggressive tax exemptions, making it a powerhouse for high-density compute and long-term storage scaling.

Nebraska: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReliable regional paths with direct national backbone access.
Direct Cloud On-RampsOver 1 – as of September 2025Direct local access to Google Cloud (GCP) is available.
Power Cost$0.07–$0.09/kWh – as of September 2025Among the most competitive rates in the United States.
Disaster RiskModerate (68.91) – as of September 2025Primary concerns involve regional weather rather than coastal events.
Tax IncentivesYes – as of September 2025Sales tax exemptions apply specifically to data center hardware.
Sales Tax5.50% – as of September 2025Competitive state rate for general business operational expenses.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Nebraska hosts a diverse carrier environment with over 20 providers as of September 2025. The market connects via a mix of national Tier 1 carriers and regional fiber networks, allowing for efficient traffic management without the congestion found in coastal hubs.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions. As of September 2025, Nebraska provides direct on-ramp access to Google Cloud (GCP). This proximity supports low-latency hybrid cloud architectures and secure, high-speed data transfers between local environments and the cloud.

Internet Exchange Points (IXPs): Local peering is concentrated in Omaha, facilitating efficient regional traffic routing. Large-scale peering for global reach often utilizes high-capacity direct links to major national hubs in Chicago or Denver.

Bare Metal: High-performance dedicated hardware is available through providers such as ColoCrossing as of September 2025. These services allow for rapid infrastructure deployment without the heavy capital expenditure of physical server maintenance.

Power Analysis

Average Cost Of Power: Industrial electricity rates are highly attractive, ranging from $0.07 to $0.09/kWh as of September 2025. The energy mix consists of approximately 40% coal, 25% nuclear, 20% renewables, and 15% natural gas, ensuring a diverse and stable supply. These rates provide a clear path to reducing the total cost of ownership for power-hungry workloads.

Power Grid Reliability: The state features a unique 100% publicly owned utility model. This structure encourages consistent infrastructure investment, resulting in a well-engineered grid with redundant transmission paths and multi-substation support in primary industrial corridors.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Omaha and Lincoln are strategically located near major headquarters for the insurance, financial services, and ag-tech sectors. This ensures low-latency access for corporate offices and primary server infrastructure.

Regional Market Reach: Located at the geographic center of the country, Nebraska offers a balanced latency profile for traffic moving between the East and West coasts. It serves as a reliable mid-point for reaching a broad North American audience with consistent performance.

Tax Advantage For Data Centers: Nebraska provides significant financial relief through specific sales tax exemptions for data center equipment. This incentive lowers the cost of initial hardware deployments and simplifies the expense of regular technology refreshes.

Natural Disaster Risk

Nebraska maintains a Moderate risk profile with a FEMA NRI score of 68.91 as of September 2025. While free from coastal flooding concerns, facility operators prioritize resilience against regional weather events.

  • Tornadoes and Strong Winds: Frequent risks that necessitate reinforced building structures and debris-resistant envelopes.
  • Winter Weather and Ice Storms: Seasonal events requiring reliable on-site fuel storage and specialized winterization protocols.
  • Hail and Lightning: Common spring and summer occurrences that demand sturdy roofing systems and advanced grounding.
  • River Flooding: A localized risk near waterways, typically managed through site selection in elevated industrial parks.
  • Drought and Heat Waves: Regional environmental factors that can influence utility demand and cooling system efficiency.
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