Data Centers in Iowa

Iowa – Resilient & Cost-Effective Infrastructure

Iowa offers a compelling environment for businesses prioritizing operational stability, low disaster risk, and favorable operating costs. Its central location, combined with significant tax incentives and a power grid rich in renewable energy, makes it an excellent choice for disaster recovery sites, backend processing, and long-term data archival.

Iowa: At A Glance

Network & Connectivity Ecosystem

Iowa's connectivity is reliable for its role as a secondary market, anchored by a good mix of regional and national providers.

Carrier Density & Carrier Neutrality: The state is served by approximately 10 providers across its 24 data centers, as of September 2025. This offers sufficient options for creating redundant network paths, with several carrier-neutral facilities available.

Direct Cloud On-Ramps: Iowa has 0 direct cloud on-ramps, meaning there are no dedicated private connections to major cloud providers within the state. Businesses connect to cloud regions via network providers with points of presence in nearby hubs like Chicago or Kansas City.

Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately within data centers or routed through major exchange points in Chicago, such as the Equinix IX.

Bare Metal: Bare metal server options are available, typically through providers that have a presence in regional data centers. Options from providers like ColoCrossing can be deployed to serve local and regional needs.

Power Analysis

Iowa presents a strong case for power-conscious deployments, especially for sustainability-focused organizations.

Average Cost Of Power: The state's power costs are competitive, driven by a grid where approximately 60% of energy comes from renewables, primarily wind. This high percentage of renewable generation helps stabilize electricity prices and provides predictable operating expenses for power-intensive workloads.

Power Grid Reliability: The electrical grid is well-engineered to support both agricultural and growing industrial needs. Data centers in the primary corridors benefit from access to reliable power infrastructure designed to handle the demands of modern computing.

Market Access, Business & Tax Climate

Iowa's business environment is practical and cost-effective, supported by a clear state-level strategy to attract technology investment.

Proximity To Key Business Districts: Data centers are strategically located to support the state's primary industries, including finance, insurance, manufacturing, and biotechnology in cities like Des Moines and Cedar Rapids. This proximity allows for low-latency support for local enterprise operations.

Regional Market Reach: From its central US location, Iowa serves as an effective hub for applications and content delivery targeting the Midwest. It provides a strategic midpoint between coastal markets without the high costs or risks.

Tax Advantage For Data Centers: Iowa offers significant tax incentives that directly reduce capital expenditures. The sales and use tax exemption on servers, cooling equipment, and power infrastructure is a primary financial benefit that lowers the total cost of a new build or major expansion.

Natural Disaster Risk

Iowa has a moderate natural disaster risk profile, making it a suitable location for critical infrastructure designed for high uptime.

Based on FEMA's National Risk Index, Iowa scores 43.14, which is considered a very low national ranking. The primary environmental risks are weather-related events common to the Great Plains. Key hazards include severe wind, tornado, winter weather, drought, hail, and riverine flooding. The state has no exposure to hurricanes, earthquakes, or wildfires, contributing to its reputation for operational stability.