Data Centers in Waterloo

Waterloo, Iowa – Resilient & Cost-Effective Infrastructure

Waterloo provides a stable and cost-effective location for businesses needing resilient infrastructure outside of primary coastal markets. Its combination of low disaster risk, significant tax incentives, and a high concentration of renewable energy makes it ideal for workloads requiring high uptime and predictable operating expenses, directly supporting business continuity and financial performance.

Waterloo, Iowa: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Waterloo supports a focused ecosystem with at least 3 distinct network providers available in local data centers, as of September 2025. The market offers access to both regional and national carriers, with carrier-neutral facilities providing choice and resiliency.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Waterloo, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the nearest primary hub in Chicago, accessible through private network extensions like PNI or wave services.

Internet Exchange Points (IXPs): Public peering is limited within Waterloo itself. Most interconnection occurs through private peering arrangements within local data centers or by connecting to major IXPs in Chicago or Des Moines for broader network access.

Bare Metal: Bare metal server options are available in the region, providing dedicated compute for performance-sensitive applications. Providers like ColoCrossing offer services accessible from the area.

Power Analysis

Average Cost Of Power: The average industrial electricity cost is approximately $0.08/kWh, as of September 2025. This competitive pricing is driven by Iowa's energy mix, which includes over 60% renewable sources, primarily wind. These low and predictable power costs offer a significant operational advantage for compute-heavy infrastructure.

Power Grid Reliability: The power grid serving the Waterloo region is well-engineered for reliability. The infrastructure is supported by a strong energy generation profile, including substantial wind capacity, which contributes to overall grid stability for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Waterloo serve local and regional enterprises in manufacturing, agriculture technology, and healthcare. Proximity enables low-latency connectivity for these core industries concentrated in the Cedar Valley.

Regional Market Reach: Waterloo is well-positioned to serve as a disaster recovery or secondary site for primary operations in larger Midwest hubs like Chicago, Minneapolis, and Kansas City. It offers a low-risk, cost-effective alternative for reaching end-users throughout the Upper Midwest.

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

Natural Disaster Risk

Waterloo 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 location avoids major threats like earthquakes, hurricanes, and wildfires common to other US regions.

The primary environmental risks to consider are:

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