Data Centers in Council Bluffs
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Council Bluffs, Iowa, USA – Strategic & Resilient Midwest Hub
Council Bluffs provides a compelling North American data center market for enterprises that prioritize low operational costs, a high mix of renewable energy, and significant tax advantages. This location is engineered for resilience, offering a stable platform for workloads that require high availability and can serve the broader Midwest region with minimal latency. Its strategic position makes it a strong choice for disaster recovery sites and scalable compute infrastructure.
Council Bluffs, Iowa, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, with primary access to national networks via nearby Omaha. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is available via private network extension to hubs in Omaha or Kansas City. |
| Power Cost | $0.07-0.09/kWh | High percentage of wind power contributes to competitive and stable energy pricing. |
| Disaster Risk | Moderate (43.14) – as of September 2025 | Very low overall risk score with primary hazards related to weather events. |
| Tax Incentives | Yes | State offers significant sales and use tax exemptions for qualifying data center investments. |
| Sales Tax | 6.00% (Iowa) – as of September 2025 | State-level sales tax; specific exemptions apply to data center equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Council Bluffs and greater Omaha area is served by over 20 unique fiber providers as of September 2025. Carrier-neutral facilities provide access to a competitive blend of local, regional, and national carriers for network redundancy.
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 through dedicated circuits to nearby network hubs in Omaha or Kansas City.
Internet Exchange Points (IXPs): Public peering is not a primary feature of this market. Most interconnection occurs via private peering within local data centers or through the Omaha IX, which facilitates regional traffic exchange.
Bare Metal: Bare metal server options are available in the region, providing on-demand compute for performance-sensitive applications. Providers such as ColoCrossing offer dedicated servers, enabling direct access to the area's network and power advantages.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Council Bluffs area typically range from $0.07 to $0.09 per kWh as of September 2025. This competitive pricing is driven by Iowa's energy mix, which includes approximately 60% renewable sources, primarily wind. These favorable rates directly reduce the total cost of ownership for high-density compute.
Power Grid Reliability: The electrical grid is well-engineered to support the region's significant industrial and data center load. Local power is supplied with redundancy from multiple substations, ensuring high levels of uptime and service continuity for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Council Bluffs are situated directly across the Missouri River from Omaha, Nebraska. This provides low-latency access to Omaha's financial services, insurance, and logistics industries, making it an ideal offsite or primary location for enterprises in that metropolitan area.
Regional Market Reach: Council Bluffs serves as an effective hub for delivering services to the Central and Mountain time zones. Its central location can reach millions of end-users across the Midwest and Great Plains with consistent performance.
Tax Advantage For Data Centers: Iowa provides a powerful sales and use tax exemption on equipment, computers, and electricity for qualifying data centers. This incentive substantially lowers the initial capital expenditure and ongoing operational costs for large-scale deployments.
Natural Disaster Risk
Council Bluffs 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 area is not prone to catastrophic events like earthquakes or hurricanes. The primary risks are weather-related and include tornadoes, strong winds, hail, winter weather, and riverine flooding.
