Data Centers in Quad Cities

Quad Cities – Resilient Midwest Edge Computing

The Quad Cities region offers a strategic and cost-effective location for enterprises requiring resilient infrastructure in the central United States. It is an excellent choice for disaster recovery, secondary compute sites, and edge workloads serving the Midwest, benefiting from strong tax incentives and a low-risk environment. This market provides reliable power and connectivity without the high costs of primary data center hubs.

Quad Cities: At A Glance

Network & Connectivity Ecosystem

The Quad Cities is a secondary market with a reliable connectivity ecosystem suited for enterprise and edge deployments.

Carrier Density & Carrier Neutrality: The region is served by over 2 providers, as of September 2025, offering diverse routing options primarily geared towards regional enterprise needs. Facilities offer carrier-neutral environments, ensuring competitive pricing and network flexibility.

Direct Cloud On-Ramps: There are no direct, dedicated cloud on-ramps within the Quad Cities, as of September 2025. Businesses connect to hyperscale cloud providers like AWS, Google Cloud, and Microsoft Azure via the primary interconnection hub in Chicago. High-bandwidth connectivity is achieved through private network interconnects (PNI) and wavelength services from local carriers.

Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately between carriers or routed through major exchange points in Chicago to optimize traffic flow and reduce latency for the region.

Bare Metal: Bare metal server options are available through providers in the broader Midwest region. Companies like Hivelocity can serve customers in this area from nearby data centers, providing dedicated compute capacity for performance-sensitive applications.

Power Analysis

Average Cost Of Power: Industrial electricity rates in the Quad Cities region typically range from $0.07 to $0.09 per kWh, as of September 2025. This competitive pricing is driven by a favorable generation mix, making it a cost-effective location for compute-heavy operations. The power grid is distinguished by its high concentration of renewable energy, with wind power making up approximately 60% of the state's electricity generation.

Power Grid Reliability: The electrical grid serving the Quad Cities is well-engineered and reliable. Data centers in the area benefit from redundant power feeds and substation diversity, which is standard for supporting critical infrastructure in this established industrial region.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the Quad Cities are positioned to serve a diverse industrial base, including manufacturing, logistics, and agricultural technology. This proximity enables low-latency connectivity for local enterprises managing critical operations and supply chains.

Regional Market Reach: Strategically located on the Iowa-Illinois border, the market provides effective service delivery to a multi-state area across the Upper Midwest. It is an ideal hub for content delivery, application acceleration, and disaster recovery for businesses in Des Moines, Chicago, and Minneapolis.

Tax Advantage For Data Centers: Iowa offers significant tax benefits that directly reduce the total cost of ownership for data center operators. The state's sales and use tax exemption on equipment and electricity is a powerful financial incentive for new and expanding facilities.

Natural Disaster Risk

The Quad Cities region 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 area is not exposed to major seismic or hurricane threats, making it a stable location for critical infrastructure.

Primary risks are atmospheric and typical for the Midwest, including:

• Tornado
• Severe Wind & Hail
• Winter Weather & Ice Storms
• Riverine Flooding
• Drought