Data Centers in Waterloo
3 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Other Markets in Iowa
Waterloo, Iowa – Resilient Midwest Digital Infrastructure
Waterloo provides a cost-effective and low-risk environment for companies needing resilient infrastructure in the central United States. Its strong tax incentives and access to renewable energy make it a compelling choice for businesses building out disaster recovery sites or serving regional agricultural and manufacturing hubs.
Waterloo, Iowa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, suitable for many general business applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access cloud providers via network extensions from hubs like Chicago or Des Moines. |
| Power Cost | $0.08 - $0.10/kWh | Sourced from a grid with over 60% renewables, primarily wind power. |
| Disaster Risk | Moderate (43.14) | Very low overall score from FEMA, with manageable, non-catastrophic regional hazards. |
| Tax Incentives | Yes | Includes a sales and use tax exemption for large-scale data center investments. |
| Sales Tax | 6.00% (Iowa) – as of Midyear 2025 | State-level sales tax; data center-specific exemptions apply to eligible projects. |
Network & Connectivity Ecosystem
Waterloo is a secondary market with reliable, though not top-tier, network access. It is well-suited for applications that do not require sub-millisecond latency to major financial or peering hubs.
Carrier Density & Carrier Neutrality: Waterloo is served by approximately 3 providers, as of September 2025. Carrier-neutral facilities offer connectivity to key regional and national networks, providing sufficient options for enterprise redundancy and uptime.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Waterloo. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure through private network connections to major hubs such as Chicago or Des Moines.
Internet Exchange Points (IXPs): Public peering is not a feature of the Waterloo market. Interconnection is typically managed through private peering arrangements with carriers or established through transit in larger Midwest hubs.
Bare Metal: Bare metal server options are available in the region, often provisioned from providers in larger nearby markets like Chicago. Services from companies such as ColoCrossing can serve Waterloo-based workloads effectively.
Power Analysis
Iowa's power infrastructure is a key advantage for data center operators, offering a favorable mix of cost-effectiveness and renewable sources.
Average Cost Of Power: Industrial electricity rates in the Waterloo area typically range from $0.08 to $0.10 per kWh, as of September 2025. This competitive pricing, combined with a high percentage of wind energy, helps lower the total cost of ownership and meet sustainability goals.
Power Grid Reliability: The regional power grid is well-engineered, benefiting from significant investment in wind energy infrastructure. Data centers in the area are supported by reliable utility service, with redundant feeds available for mission-critical facilities.
Market Access, Business & Tax Climate
Waterloo offers a stable business environment with significant financial incentives for technology investment.
Proximity To Key Business Districts: Data centers in Waterloo are positioned to serve the region's prominent manufacturing, agriculture technology (AgriTech), and healthcare sectors. This proximity enables low-latency support for local enterprise operations.
Regional Market Reach: From Waterloo, businesses can effectively serve end-users across Iowa and the broader Upper Midwest. The central location provides a good footprint for disaster recovery and secondary application hosting for companies based in Chicago, Minneapolis, or Kansas City.
Tax Advantage For Data Centers: Iowa provides a compelling sales and use tax exemption on equipment and electricity for qualifying data center projects. This incentive substantially reduces both the initial capital expenditure and ongoing operational costs for large-scale deployments.
Natural Disaster Risk
Waterloo has a moderate disaster risk profile, with a national risk score of 43.14 out of 100, as of September 2025. The primary risks are weather-related and typical for the Midwest, allowing for effective mitigation through proper facility design.
Key environmental risks include:
- Tornado
- Severe Wind (Straight-line)
- Hail
- Winter Storm
- River Flooding
- Drought
