Data Centers in Cedar Rapids

Cedar Rapids, Iowa, USA – Resilient Midwest Colocation

Cedar Rapids is an emerging edge market ideal for organizations requiring resilient, low-latency infrastructure in the American Midwest. Its combination of low disaster risk, significant renewable energy, and strong tax incentives makes it a strategic choice for disaster recovery, agricultural technology, and regional content delivery. This market offers a stable and cost-effective alternative to more congested primary hubs.

Cedar Rapids, Iowa, USA: At A Glance

Network & Connectivity Ecosystem

Cedar Rapids provides a capable network environment for regional workloads, though it is not a primary interconnection hub.

Carrier Density & Carrier Neutrality: The market is served by over 3 network providers across 2 data centers as of September 2025. This offers sufficient diversity for most enterprise and disaster recovery needs, with carrier-neutral facilities available.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Cedar Rapids. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via network links to major hubs such as Chicago. Private network connections offer secure, reliable access.

Internet Exchange Points (IXPs): Public peering is limited within the immediate market. Most network peering occurs privately between carriers or through exchanges in larger nearby cities like Des Moines or Chicago, which handle the bulk of regional traffic exchange.

Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers like phoenixNAP and ColoCrossing can serve the region, offering an alternative to virtualized environments.

Power Analysis

Iowa's power infrastructure is a significant advantage for data center operators in Cedar Rapids, characterized by its high concentration of renewable energy and competitive pricing.

Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing is driven by a grid that sources approximately 60% of its energy from renewables, primarily wind. These favorable rates reduce the total cost of ownership for power-intensive operations.

Power Grid Reliability: The regional power grid is well-engineered and reliable. The energy mix, heavily weighted toward wind power, provides a stable and increasingly sustainable source of electricity for critical facilities.

Market Access, Business & Tax Climate

Cedar Rapids provides a supportive business environment with strategic market access and compelling financial incentives.

Proximity To Key Business Districts: Data centers in the area serve the region's strong manufacturing, aerospace, and agricultural technology sectors. Low-latency connectivity is critical for these local industries that rely on real-time data processing and logistics.

Regional Market Reach: The market is well-positioned to serve users across Iowa, southern Minnesota, western Illinois, and northern Missouri. It functions as an effective edge location for content delivery and application hosting for this tristate area.

Tax Advantage For Data Centers: Iowa offers a significant sales and use tax exemption on equipment, computers, and electricity for qualifying data center projects. This incentive dramatically lowers the initial capital investment and ongoing operational expenses for new builds and major expansions.

Natural Disaster Risk

Cedar Rapids 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 score indicates a much lower risk level than coastal or seismically active regions, making it a stable location for critical infrastructure.

Key environmental risks include:

• Tornado
• Strong Wind
• Drought
• Riverine Flooding
• Hail
• Winter Weather