Data Centers in Sioux City

Sioux City – Reliable Power for Midwest Workloads

Sioux City provides a stable, low-risk environment for companies needing to serve agricultural, commercial, and industrial markets across the tristate area of Iowa, Nebraska, and South Dakota. Its primary advantage lies in a high-renewables power grid and significant tax incentives, making it a cost-effective location for resilient infrastructure deployments.

Sioux City: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Sioux City’s colocation facilities provide access to over 1 provider, as of September 2025. The market supports carrier-neutral interconnection, though the ecosystem is more focused on regional carriers compared to major national hubs.

Direct Cloud On-Ramps There are no direct cloud on-ramps within Sioux City data centers, as of September 2025. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure via the nearest network hubs in Omaha or Des Moines. Private network extensions via wave or PNI are common solutions for establishing secure, low-latency cloud access.

Internet Exchange Points (IXPs) Public peering is limited within Sioux City. Most traffic exchange occurs through private peering arrangements within local data centers or is routed through larger IXPs in regional hubs like Omaha or Kansas City.

Bare Metal Bare metal server options are available in the region, providing dedicated compute resources for performance-sensitive applications. Providers like ColoCrossing can serve deployments in the Midwest.

Power Analysis

Average Cost Of Power Industrial electricity rates are estimated between $0.07 and $0.09 per kWh, as of September 2025. This competitive pricing is supported by Iowa's energy mix, which includes approximately 60% renewables, primarily from wind. These favorable rates reduce the total cost of ownership for compute-heavy operations.

Power Grid Reliability The power grid serving the Sioux City area is well-engineered for its industrial and agricultural base. Local data centers are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Sioux City are positioned to serve the city's core business districts and the broader tristate region's commercial, food processing, and advanced manufacturing industries. This proximity enables low-latency connectivity for local enterprise operations.

Regional Market Reach From Sioux City, an organization can effectively deliver services to markets across Iowa, Nebraska, and South Dakota. The location serves as a strategic point for disaster recovery or secondary infrastructure for companies with a primary presence in larger Midwest cities.

Tax Advantage For Data Centers Iowa offers a significant sales and use tax exemption on equipment and energy for qualifying data center projects. This incentive directly lowers the substantial upfront capital expenditure and ongoing operational costs associated with building and running a facility.

Natural Disaster Risk

Sioux City has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 43.14, as of September 2025. The location avoids the primary threats of hurricanes and earthquakes that impact coastal regions. Key risks are tied to regional weather patterns and include:

• Tornado
• Strong Wind
• Drought
• Hail
• Riverine Flooding
• Winter Weather