Data Centers in Mason City
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Mason City, Iowa – Reliable Midwest Colocation
Mason City offers a compelling option for organizations prioritizing cost-effective operations and disaster recovery in the Central United States. The market provides access to significant tax incentives and a low-risk environment, making it a strategic choice for workloads that require geographic diversity without the high costs of primary coastal hubs.
Mason City, Iowa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, suitable for disaster recovery and secondary sites. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Des Moines or Minneapolis. Private extensions are available. |
| Power Cost | $0.07 - $0.09/kWh | Industrial rates are competitive, with a grid mix high in renewables. |
| Disaster Risk | Moderate (43.14 NRI Score) | Very low overall FEMA rating with manageable, specific regional risks noted. |
| Tax Incentives | Yes | DC-specific sales and use tax exemptions on equipment and power. |
| Sales Tax | 6.00% (Iowa State) | As of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market features 2 data centers from 1 provider, as of September 2025. Carrier density is sufficient for regional enterprise needs, with options for private, dedicated network build-outs to major carrier hotels in larger metro areas.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly in Mason City, as of September 2025. Secure, private connections to cloud providers like AWS, Google Cloud, and Microsoft Azure are typically established via dedicated circuits to network hubs in Des Moines or Minneapolis.
Internet Exchange Points (IXPs): Most network peering is conducted privately or routed through major exchange points in Minneapolis or Kansas City. This arrangement provides reliable connectivity for traffic entering and leaving the region.
Bare Metal: Bare metal server options are available in the region, primarily through providers with national footprints that can deploy hardware into local data centers. Services from providers like Hivelocity or ColoCrossing can serve customer needs here.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Mason City are competitive, typically ranging from $0.07 to $0.09 per kWh, as of September 2025. This pricing, combined with a grid featuring approximately 60% renewables, offers significant operational savings for power-dense deployments.
Power Grid Reliability: The regional power grid is well-engineered to support industrial and agricultural loads. Local data centers are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Mason City serve the local agricultural, manufacturing, and healthcare sectors. The location provides low-latency connectivity for businesses operating across Northern Iowa and Southern Minnesota.
Regional Market Reach: The market is strategically positioned to serve as a disaster recovery or secondary site for primary operations in Des Moines, Minneapolis, and Omaha. It offers a cost-effective solution for reaching users across the Upper Midwest.
Tax Advantage For Data Centers: Iowa provides a significant sales and use tax exemption on data center construction materials, cooling and power infrastructure, and servers. This incentive directly lowers the capital expenditure required for new builds and major hardware refreshes, improving the total cost of ownership.
Natural Disaster Risk
The Mason City area 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 environment is geologically stable and avoids the primary threats like hurricanes or earthquakes that affect coastal markets. Key risks are primarily weather-related and include severe wind, tornado, winter weather, and hail.
