Data Centers in Michigan

Michigan – Stable and Cost-Effective Digital Infrastructure

Michigan provides a compelling, low-risk environment for enterprises seeking resilient and affordable colocation. Its strategic Midwest location, attractive power costs, and significant tax incentives make it an excellent choice for disaster recovery sites, secondary deployments, and latency-sensitive applications serving the Great Lakes region.

Michigan: At A Glance

Network & Connectivity Ecosystem

Michigan's connectivity is solid, with a reliable ecosystem supporting both regional and national traffic. The state hosts 39 data centers and over 18 network providers as of September 2025.

Carrier Density & Carrier Neutrality With a mix of local, regional, and national carriers, Michigan offers a healthy carrier-neutral environment. This ensures competitive pricing and diverse routing options, preventing vendor lock-in and improving network resilience.

Direct Cloud On-Ramps There are no dedicated public cloud on-ramps located directly within Michigan as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Azure through private network extensions or dedicated circuits to the primary interconnection hub in nearby Chicago.

Internet Exchange Points (IXPs) The primary public peering point is the Detroit Internet Exchange (DET-IX). DET-IX facilitates low-latency traffic exchange between local networks, content providers, and enterprises, improving performance for Michigan-based end-users. Most large-scale peering occurs privately or in Chicago.

Bare Metal Bare metal server options are readily available from providers in the state. Companies like Hivelocity and ColoCrossing offer dedicated server solutions for workloads requiring direct hardware access and consistent performance.

Power Analysis

Michigan's energy infrastructure is built on a legacy of industrial demand, resulting in a reliable and cost-effective power grid for data center operations.

Average Cost Of Power Industrial electricity rates typically range from $0.08 to $0.10 per kWh, as of September 2025. These competitive rates help lower total cost of ownership for high-density deployments. The state's power mix includes 11% renewables, with the remainder generated by fossil fuels and nuclear sources.

Power Grid Reliability The power grid, especially in metro areas like Detroit and Grand Rapids, is well-engineered to support industrial needs. Data centers in these corridors benefit from redundant power feeds and access to multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Michigan offers a business-friendly climate with strategic access to key North American markets.

Proximity To Key Business Districts Data centers are strategically located near the state's primary economic hubs in Detroit, Southfield, Ann Arbor, and Grand Rapids. This proximity provides low-latency connectivity for the automotive, advanced manufacturing, healthcare, and research sectors that define the state's economy.

Regional Market Reach From Michigan, organizations can effectively serve a large population across the Great Lakes region and into Canada. The state is an excellent location for edge computing and disaster recovery infrastructure supporting primary sites in Chicago or on the East Coast.

Tax Advantage For Data Centers Michigan provides significant tax incentives that directly reduce the cost of building and operating a data center. A sales and use tax exemption on qualified data center equipment lowers the capital investment required for new builds or technology refreshes.

Natural Disaster Risk

Michigan has a very low natural disaster risk profile, with a FEMA National Risk Index score of 9.32 out of 100 as of September 2025. This makes it one of the safest locations in the country for critical infrastructure. The primary environmental risks are manageable and largely related to severe weather. Key hazards include tornados, winter weather, ice storms, and strong winds. The state has minimal exposure to seismic activity, wildfires, or coastal events.