Data Centers in Mason City
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Mason City – Cost-Effective & Sustainable IT Infrastructure
Mason City, Iowa, presents a compelling option for companies prioritizing operational cost savings and sustainability. The market is well-suited for disaster recovery, secondary workloads, or primary infrastructure for businesses that do not require the dense connectivity of a primary coastal hub, offering significant tax advantages and access to a grid with a high percentage of renewable energy.
Mason City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity suitable for most business applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access is via Des Moines through private network extensions. |
| Power Cost | $0.07-0.09/kWh (est.) | Driven by a grid with ~60% renewables, primarily wind power. |
| Disaster Risk | Moderate (43.14 score) | Primary risks are weather-related; lacks seismic or hurricane exposure. |
| Tax Incentives | Yes | State provides a sales and use tax exemption for large data centers. |
| Sales Tax | 6.00% (Iowa) | As of Midyear 2025. |
Network & Connectivity Ecosystem
Mason City is a developing secondary market with a focused connectivity ecosystem. The city's two data centers provide reliable colocation options for local and regional enterprises.
Carrier Density & Carrier Neutrality: The market features a focused set of network providers as of September 2025. Carrier-neutral facilities ensure choice for connecting to regional and national backbones.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Mason City data centers. Businesses connect to cloud providers via dedicated network services to major hubs like Des Moines, enabling secure, low-latency access to all major cloud platforms.
Internet Exchange Points (IXPs): Public peering is not established in Mason City. Most network peering is conducted privately between carriers or routed through larger exchange points in Des Moines or Minneapolis.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers such as ColoCrossing offer solutions in the region.
Power Analysis
Iowa's power infrastructure is a key advantage for data center operators in Mason City, offering both competitive pricing and a strong sustainability profile.
Average Cost Of Power: Industrial electricity rates are estimated between $0.07 and $0.09 per kWh as of September 2025. This competitive pricing helps lower total operational costs for compute-heavy deployments. The power mix is approximately 60% renewables, mostly wind, with the remainder from fossil fuels.
Power Grid Reliability: The regional power grid is well-engineered and stable, supporting the uptime requirements of modern business applications. Local facilities are typically served by redundant power feeds to ensure high availability.
Market Access, Business & Tax Climate
Mason City offers a favorable business environment, strategic regional access, and significant financial incentives for data center investment.
Proximity To Key Business Districts: Data centers in Mason City serve the commercial and industrial base of northern Iowa and southern Minnesota. This proximity is ideal for agricultural technology, manufacturing, and local enterprise clients.
Regional Market Reach: The location provides effective, low-latency service to the Upper Midwest. It is a strong choice for a secondary disaster recovery site for companies with primary infrastructure in larger hubs like Chicago or Minneapolis.
Tax Advantage For Data Centers: Iowa offers a compelling sales and use tax exemption on equipment and electricity for qualifying data center projects. This incentive substantially reduces the initial capital investment and ongoing operational expenses for new facilities.
Natural Disaster Risk
Mason City 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 not exposed to major seismic or hurricane threats, making it a stable geographic choice.
Key risks are primarily weather-related and include:
- Tornado
- Strong Wind
- Hail
- Drought
- Riverine Flooding
- Winter Weather
