Data Centers in Mason City
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Mason City – Secure Colocation Powered by Renewables
Executive Summary
Mason City, Iowa, provides a compelling market for organizations prioritizing operational stability, low disaster risk, and ESG goals. Its infrastructure is ideal for disaster recovery sites, secondary workloads, and applications where total cost of ownership outweighs the need for ultra-low latency interconnection. Businesses can leverage significant tax incentives and a high percentage of renewable energy to build resilient and cost-effective digital assets.
Mason City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, suited for standard business and DR workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via private network extension to hubs like Des Moines or Minneapolis. |
| Power Cost | $0.07 - $0.09/kWh (est.) | Driven by a grid with over 60% renewables, primarily wind power. |
| Disaster Risk | Moderate (43.14 NRI Score) | Low overall risk profile, with primary threats from severe weather events. |
| Tax Incentives | Yes | State offers a sales and use tax exemption on equipment for qualifying projects. |
| Sales Tax | 6.00% (State Rate) | This state-level tax can be offset by specific data center incentives. |
Network & Connectivity Ecosystem
Mason City is a developing edge market with a focused connectivity profile. While not a primary interconnection hub, it offers reliable network access for regional operations.
Carrier Density & Carrier Neutrality The market contains 2 data centers with service from at least 1 provider, as of September 2025. This indicates a limited but stable carrier environment, with network diversity available through transport to larger regional hubs.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Mason City. Secure, private connections to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure are typically established via dedicated circuits to network PoPs in Des Moines or Minneapolis.
Internet Exchange Points (IXPs) Public peering is not available directly within Mason City. The majority of network peering is conducted privately or routed through major exchange points in larger Midwest cities like Chicago or Minneapolis to ensure efficient traffic exchange.
Bare Metal Bare metal server options are available, enabling businesses to deploy dedicated compute without capital expenditure. National providers like Hivelocity can serve customers in the region, delivering performance compute on demand.
Power Analysis
Iowa's power infrastructure is notable for its high concentration of renewable energy and competitive pricing, making it attractive for energy-intensive compute workloads.
Average Cost Of Power Industrial electricity rates are estimated between $0.07 and $0.09 per kWh, as of September 2025. This competitive pricing, supported by a power mix of approximately 60% renewables, helps significantly lower the operational costs for data center deployments.
Power Grid Reliability The regional power grid is well-engineered and reliable. The substantial investment in wind energy contributes to a modern and stable electrical system capable of supporting critical data center operations.
Market Access, Business & Tax Climate
Mason City offers a favorable business environment, combining strategic location with powerful financial incentives for technology investment.
Proximity To Key Business Districts Data centers in Mason City are positioned to serve the agricultural technology, manufacturing, and healthcare sectors of Northern Iowa and Southern Minnesota. This proximity enables low-latency support for regional business operations.
Regional Market Reach The location is well-suited as a secondary or disaster recovery site for primary operations in larger Midwest hubs like Des Moines, Minneapolis, or Omaha. It provides geographic diversity while remaining within a manageable distance.
Tax Advantage For Data Centers Iowa provides a significant sales and use tax exemption on data center equipment, software, and construction materials. This incentive dramatically reduces the initial capital investment required for building or expanding a facility, improving project ROI.
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 primary risks are weather-related, and the region has no significant exposure to seismic or coastal events.
Key environmental risks include:
- Tornado
- Strong Wind
- Hail
- Ice Storm & Winter Weather
- Riverine Flooding
- Drought & Cold Waves
