Data Centers in Jesup
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Jesup, Iowa – Resilient Midwest Digital Infrastructure
Jesup, Iowa, offers a strategic location for resilient digital infrastructure, capitalizing on strong tax incentives and a low-risk natural disaster profile. This market is ideal for enterprises requiring cost-effective, secure colocation for secondary workloads, disaster recovery, and applications serving agricultural and industrial hubs in the Midwest. Its access to a renewable-heavy power grid makes it a compelling choice for meeting sustainability goals without sacrificing uptime.
Jesup, Iowa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, suitable for disaster recovery and non-latency-sensitive applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via network extensions to major hubs like Chicago or Des Moines. |
| Power Cost | $0.08 - $0.10/kWh | High renewable mix (~60% wind) contributes to stable and competitive energy pricing. |
| Disaster Risk | Moderate (43.14) | Very low overall score with primary risks from severe weather events. |
| Tax Incentives | Yes | Data center-specific sales and use tax exemptions are available for significant investments. |
| Sales Tax | 6.00% (State) | Iowa state sales tax, as of Midyear 2025. |
Network & Connectivity Ecosystem
Jesup's connectivity is built for regional resilience rather than high-frequency trading. The ecosystem is sufficient for standard enterprise, backup, and disaster recovery needs.
Carrier Density & Carrier Neutrality: The market provides access to a focused group of regional and national carriers, with over 10 providers available as of September 2025. Carrier neutrality is standard, allowing tenants to connect with their preferred providers.
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 network extensions (PNI/wave) to major interconnection hubs in Des Moines or Chicago.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most traffic is exchanged through private peering arrangements or routed through major IXPs in larger regional cities like the Des Moines Internet Exchange (DMIX).
Bare Metal: Bare metal server options are available through providers that service edge and regional markets. Solutions from companies like ColoCrossing and Hivelocity can be deployed to support compute-heavy workloads.
Power Analysis
Iowa is a leader in renewable energy generation, which directly benefits data center operators in Jesup through cost and sustainability advantages.
Average Cost Of Power: Industrial electricity rates typically range from $0.08 to $0.10/kWh, as of September 2025. This competitive pricing is driven by the state's significant investment in wind power, which helps stabilize energy costs for high-consumption facilities.
Power Grid Reliability: The regional power grid is well-engineered to support both agricultural and industrial loads. Infrastructure supporting local data centers is designed for reliability, with access to redundant power feeds and substation support to ensure consistent uptime.
Market Access, Business & Tax Climate
Jesup provides a favorable business environment, especially for capital-intensive projects like data centers.
Proximity To Key Business Districts: The market serves the agricultural technology (AgriTech) and manufacturing sectors prominent in Eastern Iowa, including nearby Waterloo and Cedar Falls. Proximity is valuable for processing large datasets related to logistics, smart farming, and industrial automation.
Regional Market Reach: From Jesup, digital services can effectively reach end-users across Iowa, southern Minnesota, and western Illinois. It is a good location for content delivery and application hosting aimed at this specific Midwest population corridor.
Tax Advantage For Data Centers: Iowa offers significant financial benefits for data center investments. The primary advantage is a complete sales and use tax exemption on equipment, software, and energy costs, which substantially lowers the total cost of ownership for large-scale deployments.
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. The location is insulated from seismic and coastal threats, with primary risks related to severe weather.
Key regional risks include:
- Tornado
- Severe Wind (Derecho)
- Drought
- Riverine Flooding
- Hail
- Winter Storm
