Data Centers in Quad Cities

Quad Cities – Strategic High Resilience Regional Hub

Executive Summary

This market serves enterprises requiring a cost-effective alternative to Tier 1 hubs like Chicago while maintaining resilient connectivity. Leveraging Iowa’s favorable tax environment and high renewable energy mix, it provides a stable foundation for disaster recovery and regional edge deployments where cost-efficiency and power sustainability are top priorities.

Quad Cities: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market features a focused carrier environment with approximately 5–10 providers as of September 2025. While the provider count is lower than in major peering hubs, the existing infrastructure supports reliable enterprise connectivity and diverse fiber paths across the Midwest.

Direct Cloud On-Ramps: There are 0 direct cloud on-ramps in this market as of September 2025. Low-latency access to AWS, Google Cloud (GCP), and Microsoft Azure is typically achieved via private network extensions or transport circuits to the nearest national hub in Chicago.

Internet Exchange Points (IXPs): Public internet exchanges are limited within the immediate metro area as of September 2025. Most local peering occurs through private interconnects, while larger traffic volumes are routed through major regional exchanges in Chicago to maximize throughput.

Bare Metal: Bare metal services are available through regional providers and national platforms such as Hivelocity or ColoCrossing as of September 2025. These options allow for high-performance hardware deployments without the overhead of traditional colocation management.

Power Analysis

Average Cost Of Power: Industrial electricity rates range from $0.07 to $0.09/kWh as of September 2025. The energy mix is significantly influenced by the regional renewable sector, with approximately 60% of power generated from wind and 40% from fossil fuels. This mix provides a sustainable and cost-predictable energy source for power-intensive operations.

Power Grid Reliability: The local grid is supported by a well-engineered network of substations and redundant transmission lines. This infrastructure ensures consistent delivery for industrial users and colocation facilities in major data center corridors.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers here are centrally located near major manufacturing and logistics hubs. This proximity is vital for industrial IoT applications and supply chain management systems that require low-latency processing at the edge.

Regional Market Reach: The Quad Cities effectively serve a population across eastern Iowa and western Illinois. This position makes it a strategic choice for companies looking to provide localized services to the Midwest without the high costs of Tier 1 urban centers.

Tax Advantage For Data Centers: Iowa provides a significant sales and use tax exemption for specialized data center equipment and electricity consumption. This financial benefit directly assists in lowering the total cost of ownership for long-term infrastructure projects.

Natural Disaster Risk

The Quad Cities carries a Moderate risk rating with a score of 43.14 as of September 2025. The regional environment is subject to seasonal weather patterns that require specific facility hardening.

The primary natural hazards include:

• Riverine Flooding
• Tornadoes
• Ice Storms
• Strong Winds
• Cold Waves
• Winter Weather

Other risks such as drought are noted but considered less impactful to daily data center operations when appropriate site-specific protections are in place. Since this is an inland location, coastal flooding and tsunamis are not material risks.