Data Centers in Council Bluffs
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Council Bluffs – Strategic & Low-Cost Midwest Hub
Council Bluffs is a primary market for hyperscale and large enterprise deployments seeking low power costs, significant tax incentives, and a low-risk environment. Its location offers a compelling alternative to more congested primary markets, delivering robust infrastructure without sacrificing access to major national fiber routes.
Council Bluffs: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, adjacent to the primary Omaha, NE network hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major on-ramp hub is Omaha or Kansas City. |
| Power Cost | $0.06-0.08/kWh (est.) | Driven by a high percentage of low-cost wind power in the grid mix. |
| Disaster Risk | Moderate (43.14) | Main risks are atmospheric (wind, hail); seismic and coastal risks are negligible. |
| Tax Incentives | Yes | State provides a sales and use tax exemption for large data center investments. |
| Sales Tax | 6.00% (State Rate) | Iowa sales tax as of mid-2025. |
Network & Connectivity Ecosystem
Council Bluffs leverages its proximity to Omaha, a significant Tier 2 network hub on the primary east-west fiber routes across the United States.
Carrier Density & Carrier Neutrality: While specific data center carrier counts are private, the metro area benefits from access to the rich connectivity in nearby Omaha, which features dozens of unique network providers as of September 2025. Carrier-neutral facilities are available.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Council Bluffs as of September 2025. Secure, private connections to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are established via dedicated circuits to nearby hubs like Omaha and Kansas City.
Internet Exchange Points (IXPs): The region is served by the Omaha IX, which facilitates low-latency traffic exchange between regional carriers, content providers, and enterprises. Most large-scale peering is handled privately within carrier-neutral data centers.
Bare Metal: Bare metal server options are available in the broader region, often deployed from nearby major markets to serve local latency needs. Providers like phoenixNAP and ColoCrossing can service deployments in the area.
Power Analysis
Iowa's power infrastructure is a key advantage for data center operators in Council Bluffs, offering both low costs and a favorable renewable energy mix.
Average Cost Of Power: Industrial electricity rates are estimated between $0.06 and $0.08 per kWh as of September 2025, placing the market among the most competitive in the nation. This cost structure provides a significant operational expense advantage for high-density computing. The grid mix is approximately 60% renewables, primarily from wind.
Power Grid Reliability: The local power grid is well-engineered to support the massive electrical loads of hyperscale data centers. Infrastructure is typically fed by multiple substations, providing the redundancy necessary for high-uptime operations.
Market Access, Business & Tax Climate
Council Bluffs provides strong financial incentives and strategic access to the greater Midwest.
Proximity To Key Business Districts: The market sits directly across the Missouri River from Omaha, Nebraska, forming a single economic area. This provides access to Omaha's financial services, insurance, and logistics industries.
Regional Market Reach: From Council Bluffs, digital services can effectively reach a large population across the Midwest, including Kansas City, Des Moines, and Minneapolis, with low latency.
Tax Advantage For Data Centers: Iowa offers compelling tax programs specifically for data centers. These incentives eliminate the state sales and use tax on critical infrastructure purchases, directly reducing the capital expenditure required for new builds or major expansions.
Natural Disaster Risk
The region has a moderate disaster risk profile, primarily from atmospheric and weather-related events.
Based on the FEMA National Risk Index, the area has a composite score of 43.14 out of 100, which is considered moderate as of September 2025. The primary natural hazards for data center planning are tornadoes, severe wind, winter weather, hail, and riverine flooding. The risk from earthquakes or coastal events is negligible.
