Data Centers in Ankeny
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Ankeny, Iowa – Low-Risk, High-Incentive US Hub
Ankeny presents a compelling, low-risk option for enterprises needing a central US footprint without the costs of primary markets. The market is ideal for disaster recovery, secondary compute sites, and workloads that benefit from Iowa's aggressive tax incentives and renewable-heavy power grid. This location ensures operational stability and significant long-term cost advantages.
Ankeny, Iowa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though lacking direct cloud on-ramps. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network providers to hubs like Chicago or Kansas City. |
| Power Cost | $0.07 - $0.09/kWh | High renewable mix (over 60% wind) contributes to stable, competitive pricing. |
| Disaster Risk | Moderate (43.14) – as of September 2025 | Very low overall national risk profile; primary risks are weather-related. |
| Tax Incentives | Yes | State offers significant sales and use tax exemptions for qualifying projects. |
| Sales Tax | 6.00% (Iowa) – as of September 2025 | Data center-specific exemptions can eliminate this for IT equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Ankeny benefits from its proximity to Des Moines, providing access to over 15 regional and national carriers as of September 2025. Facilities typically offer carrier-neutral environments, allowing for redundant and competitive connectivity options.
Direct Cloud On-Ramps: There are no direct, dedicated cloud on-ramps within Ankeny as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through carrier services that extend to major hubs such as Kansas City or Chicago.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately between carriers or routed through the Des Moines Internet Exchange (DMIX) or larger exchanges in Chicago.
Bare Metal: Bare metal server options are available through national providers that service the Des Moines metro area. Providers like Hivelocity and ColoCrossing can deliver compute resources into regional data centers.
Power Analysis
Average Cost Of Power: Industrial power costs in the Ankeny area are estimated to be between $0.07 and $0.09 per kWh as of September 2025. Iowa's significant investment in wind energy helps stabilize electricity prices, offering predictable operational expenses for high-density deployments.
Power Grid Reliability: The power grid supporting the Ankeny and greater Des Moines area is well-engineered. Major data center sites are often fed by redundant substations, providing the reliability required for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Ankeny are strategically located near the business and government centers of Des Moines. This proximity serves the finance, insurance, and agricultural technology sectors that form the core of Iowa's economy.
Regional Market Reach: From Ankeny, businesses can effectively serve end-users across the Midwest, including markets like Omaha, Kansas City, and Minneapolis. Its central location makes it an excellent hub for content delivery and application logic targeting the central United States.
Tax Advantage For Data Centers: Iowa provides one of the most attractive tax climates for data centers in the nation. The state offers a complete sales and use tax exemption on IT equipment, software, and infrastructure for qualifying data center projects, which dramatically lowers the total cost of ownership.
Natural Disaster Risk
Ankeny has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.14 out of 100 as of September 2025. This score is considered very low relative to the rest of the United States. The primary environmental risks are atmospheric and weather-related, not seismic or coastal.
Key risks for consideration include:
- Tornado
- Strong Wind
- Hail
- Drought
- River Flooding
- Winter Weather