Data Centers in Ankeny
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Ankeny – Cost-Effective Midwest Colocation
Ankeny provides a compelling, low-risk location for businesses that need a reliable data center presence in the central United States. It is particularly well-suited for disaster recovery, secondary workloads, or serving regional customers where low operating costs are a primary driver. This market offers significant tax advantages and access to a power grid with a high concentration of renewable energy.
Ankeny: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hubs are in Chicago, accessible via private network extensions. |
| Power Cost | $0.07 - $0.09/kWh | Iowa's power mix is over 60% renewables, primarily wind. |
| Disaster Risk | Moderate (43.14) – as of September 2025 | Primarily exposed to weather events like tornadoes and winter storms. |
| Tax Incentives | Yes | Includes a sales and use tax exemption on data center equipment and software. |
| Sales Tax | 6.00% – as of July 2025 | Reflects the Iowa state sales tax rate. |
Network & Connectivity Ecosystem
Ankeny is a secondary market focused on regional connectivity rather than dense, global interconnection.
Carrier Density & Carrier Neutrality: The market contains a focused set of providers, with at least 1 carrier present as of September 2025. Carrier-neutral facilities offer the primary path to network diversity.
Direct Cloud On-Ramps: There are no direct, public cloud on-ramps within Ankeny as of September 2025. Businesses connect to cloud providers in major hubs like Chicago through private network services like point-to-point circuits or wavelength services.
Internet Exchange Points (IXPs): Public peering is limited in the immediate Ankeny/Des Moines area. Most network peering is conducted privately between carriers or established in nearby national hubs such as Chicago or Kansas City.
Bare Metal: Bare metal server options are available, typically through providers that serve edge and secondary markets. This allows businesses to deploy dedicated compute without capital expense, with providers like Hivelocity offering solutions in the region.
Power Analysis
Iowa's power infrastructure is a key advantage for data center operators, combining low costs with a significant renewable energy component.
Average Cost Of Power: Industrial electricity rates are competitive, generally falling within the $0.07 to $0.09/kWh range as of September 2025. This favorable pricing, combined with a grid powered by over 60% renewables (mostly wind), helps lower both operational costs and carbon footprints.
Power Grid Reliability: The power grid supporting the Des Moines metro area is well-engineered and reliable. Data centers in the region are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Ankeny benefits from a stable business environment, strong tax incentives, and a strategic location within the Midwest.
Proximity To Key Business Districts: Data centers in Ankeny serve the greater Des Moines metropolitan area, a major center for the finance, insurance, and agricultural technology industries. Proximity enables low-latency connectivity for these core business sectors.
Regional Market Reach: From Ankeny, businesses can effectively serve customers throughout Iowa and the central Midwest. Its location also makes it an excellent disaster recovery site for primary operations in larger, more expensive markets like Chicago.
Tax Advantage For Data Centers: Iowa offers a significant sales and use tax exemption on servers, computers, and cooling equipment for qualifying data center projects. This incentive directly reduces the upfront capital investment required to build or expand a facility, making large-scale deployments more affordable.
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. The location is not exposed to major seismic or hurricane threats. Key risks are primarily atmospheric and seasonal, including tornados, strong wind, hail, riverine flooding, and severe winter weather such as ice storms and cold waves.
