Data Centers in Quad Cities
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Quad Cities – Resilient Midwest Digital Infrastructure
The Quad Cities market is a strong choice for businesses requiring a cost-effective and highly resilient colocation presence in the American Midwest. Its strategic location offers a compelling alternative to higher-cost primary markets like Chicago, delivering significant tax advantages and a low-risk operational environment. This makes it ideal for disaster recovery, secondary production sites, and serving regional enterprise customers.
Quad Cities: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Chicago; private network extensions are available. |
| Power Cost | $0.07 - $0.09/kWh | Industrial rates benefit from a grid with ~60% renewable energy. |
| Disaster Risk | Moderate (43.14 score) – as of September 2025 | Main risks are weather-related; avoids major seismic and hurricane zones. |
| Tax Incentives | Yes | DC-specific sales and use tax exemptions are available for qualifying projects. |
| Sales Tax | 6.00% (Iowa state rate) – as of September 2025 |
Network & Connectivity Ecosystem
The Quad Cities provides reliable connectivity for regional workloads, with primary access to national networks through nearby Tier 1 markets.
Carrier Density & Carrier Neutrality: The market offers access to over 2 national and regional carriers as of September 2025. Facilities provide carrier-neutral interconnection, ensuring competitive network pricing and resiliency.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within the immediate Quad Cities area. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated network connections to the primary hub in Chicago.
Internet Exchange Points (IXPs): Most network peering is conducted privately between carriers or routed through major exchange points in Chicago or Des Moines. This model provides efficient traffic exchange for reaching Midwest end-users.
Bare Metal: Bare metal server options are available, typically deployed on-demand by providers. Service providers like Hivelocity and ColoCrossing can deliver dedicated infrastructure into regional data centers.
Power Analysis
The region's power infrastructure is a key advantage, offering both competitive pricing and a high concentration of renewable energy.
Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09 per kWh as of September 2025. This competitive pricing is supported by a power mix that includes approximately 60% renewables, primarily from wind.
Power Grid Reliability: The electrical grid is well-engineered to support significant industrial and agricultural loads, offering reliable power. Data centers in the area are typically served by redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
The Quad Cities offers a favorable business environment, particularly for capital-intensive operations like data centers.
Proximity To Key Business Districts: Data centers here serve the region's strong logistics, advanced manufacturing, and agricultural technology sectors. The location enables low-latency performance for local and regional business operations.
Regional Market Reach: Strategically located on the Iowa-Illinois border, the market provides effective access to millions of consumers and businesses across the Upper Midwest, outside the congestion of Chicago.
Tax Advantage For Data Centers: Iowa offers substantial tax incentives that directly lower the cost of building and operating a data center. Qualifying projects receive a full sales and use tax exemption on equipment, servers, and energy consumption, reducing both upfront capital investment and long-term operational expenses.
Natural Disaster Risk
The Quad Cities region has a moderate natural disaster risk profile, avoiding the primary threats of hurricanes and earthquakes that affect other US markets.
Based on the FEMA National Risk Index, the area has a composite score of 43.14 out of 100 as of September 2025. The primary risks are atmospheric and weather-related, including tornadoes, riverine flooding, strong wind, hail, and ice storms. Facility design and operational planning in the region account for these specific, manageable threats.
