Data Centers in Jesup
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Jesup, Iowa – Low-Cost, Low-Risk US Colocation
Executive Summary
Jesup, Iowa, offers a compelling environment for companies prioritizing operational stability and cost efficiency. Its very low natural disaster risk profile, attractive power costs, and significant tax incentives make it an excellent choice for disaster recovery sites, backup data storage, and applications that are not latency-sensitive. This market delivers a secure and budget-friendly alternative to high-cost coastal data center hubs.
Jesup, Iowa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, suitable for many general business applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access major clouds via network extensions from hubs like Chicago or Des Moines. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Driven by a high percentage of renewable energy sources, primarily wind power. |
| Disaster Risk | Moderate (43.14) – as of September 2025 | Very low overall risk score from FEMA; manageable, well-understood regional hazards. |
| Tax Incentives | Yes | Data center-specific sales and use tax exemptions are available for large investments. |
| Sales Tax | 6.00% – as of September 2025 | Iowa state sales tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The Jesup market is served by at least one carrier-neutral facility, providing access to a focused group of regional and national network providers as of September 2025. While not a dense interconnection hub, it offers sufficient diversity for enterprise-grade redundancy and business continuity.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Jesup as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through dedicated network links, such as PNI or wavelength services, to major hubs in Chicago or Des Moines.
Internet Exchange Points (IXPs) Public peering is not a feature of this market. Interconnection is typically handled through private peering arrangements within the data center or by routing traffic to larger IXPs in nearby metropolitan areas like Chicago.
Bare Metal Bare metal services are available in the broader region, offering dedicated server solutions for performance-intensive workloads. Providers such as ColoCrossing can serve customers with deployments in the Midwest.
Power Analysis
Average Cost Of Power The estimated industrial electricity rate in Jesup ranges from $0.07 to $0.09 per kWh as of September 2025. This competitive pricing is supported by Iowa's energy mix, which includes approximately 60% renewables, primarily from wind. Lower power costs translate directly to reduced operational expenditures for compute-heavy infrastructure.
Power Grid Reliability Iowa's power grid is well-engineered to support its industrial and agricultural base. Data centers in the region benefit from this stability, with facilities typically built with redundant power feeds and substation support to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Jesup provide strategic support for the agricultural technology, manufacturing, and logistics industries prominent in Eastern Iowa. The location offers low-latency connections to key cities like Waterloo, Cedar Falls, and Cedar Rapids.
Regional Market Reach Jesup serves as an effective secondary data center market for organizations based in larger Midwest hubs like Chicago, Minneapolis, and Kansas City. It offers a geographically separate and cost-effective site for disaster recovery and data backup operations.
Tax Advantage For Data Centers Iowa provides a powerful sales and use tax exemption on equipment, software, and energy for qualifying data center projects. This incentive significantly lowers the initial capital investment and ongoing operational costs, making large-scale deployments more financially viable.
Natural Disaster Risk
Jesup has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.14 out of 100 as of September 2025. This very low national rating indicates a stable environment for critical infrastructure. Key risks are primarily weather-related and well-understood within the region.
Primary environmental risks include:
- Tornado
- Severe Wind
- Winter Weather
- Drought
- Hail
- River Flooding
