Data Centers in Council Bluffs
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Council Bluffs – Strategic Midwest Edge Computing Hub
Council Bluffs, part of the greater Omaha metropolitan area, is a strategic market for enterprises requiring low-latency access to the Midwest. Its primary advantages are significant tax incentives and a power grid with a high concentration of renewable energy, making it a cost-effective and sustainable choice for deployments supporting regional users and applications.
Council Bluffs: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, positioned as a key secondary US market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct cloud access is available via the nearby Omaha and Kansas City hubs. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Driven by a high percentage of wind power in the state's energy mix. |
| Disaster Risk | Moderate (Score: 43.14) | Low overall risk profile; main hazards are severe storms, not seismic or hurricane. |
| Tax Incentives | Yes | State-level sales and use tax exemptions are available for large data center investments. |
| Sales Tax | 6.00% (Iowa) | Data center-specific exemptions can eliminate this tax on equipment and power. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Council Bluffs benefits from its proximity to Omaha's established connectivity ecosystem, with access to a wide range of regional and national carriers. While the local market has a focused number of providers, carrier-neutral facilities offer interconnection to dozens of networks.
Direct Cloud On-Ramps There are no public cloud on-ramps located directly within Council Bluffs as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through private network extensions to major hubs like Kansas City or Chicago.
Internet Exchange Points (IXPs) Public peering is primarily conducted through the Omaha IX, located just across the river. This IXP facilitates low-latency traffic exchange between regional internet service providers, content delivery networks, and local enterprises.
Bare Metal Bare metal server options are available in the broader Omaha-Council Bluffs market. Providers like Hivelocity and ColoCrossing offer dedicated server solutions that leverage the region's strong network and power infrastructure.
Power Analysis
Average Cost Of Power Industrial electricity rates are estimated between $0.07 and $0.09/kWh as of September 2025, placing the market among the more competitive in the United States. This cost advantage is largely due to Iowa's significant investment in wind energy. The state's power mix is approximately 60% renewables (mostly wind) and 40% fossil fuels.
Power Grid Reliability The power grid supporting the Council Bluffs and Omaha area is well-engineered for high availability. Major data center developments are typically supported by redundant substations and robust transmission infrastructure, ensuring reliable power delivery for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Council Bluffs are strategically located to serve the Omaha metropolitan area's key industries, including finance, insurance, and logistics. This proximity enables low-latency performance for applications supporting these sectors.
Regional Market Reach From Council Bluffs, organizations can effectively serve a large portion of the central United States, including Iowa, Nebraska, Kansas, and Missouri. This makes it an excellent location for content delivery, disaster recovery, and edge computing.
Tax Advantage For Data Centers Iowa offers a compelling sales and use tax exemption on data center equipment, computers, and electricity. This state-level incentive significantly lowers both the initial capital expenditure and ongoing operational costs for qualifying projects.
Natural Disaster Risk
Council Bluffs has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.14 as of September 2025. The risk profile is characteristic of its Midwest location, with no significant coastal or seismic threats.
Primary risks include:
- Tornado
- Strong Wind
- Riverine Flooding
- Hail
- Winter Weather
- Ice Storm
- Drought
