Data Centers in Ann Arbor

Ann Arbor, Michigan, USA – Resilient Midwest Edge Colocation

Ann Arbor provides a compelling alternative to major Midwest hubs like Chicago, offering a low-risk, cost-effective environment for production and disaster recovery workloads. Its proximity to major research, automotive, and technology corridors makes it an ideal location for businesses that require reliable infrastructure without the premium costs of a Tier 1 market.

Ann Arbor, Michigan, USA: At A Glance

Network & Connectivity Ecosystem

Ann Arbor is a regional edge market with focused connectivity options. While not as dense as primary hubs, it provides reliable network access for workloads serving Southern Michigan and the surrounding Great Lakes area.

Carrier Density & Carrier Neutrality: The market includes 3 data centers with access to 2 unique network providers as of September 2025. Carrier-neutral facilities provide the primary interconnection points for enterprises deploying hybrid infrastructure.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Ann Arbor as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via dedicated circuits to network nodes in major peering cities such as Detroit and Chicago.

Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately between carriers or routed through major exchange points in Chicago to achieve efficient traffic exchange.

Bare Metal: Bare metal server options are available in the broader region, with providers like Hivelocity and ColoCrossing offering dedicated server solutions that can be connected to local colocation facilities.

Power Analysis

Michigan's power landscape offers stability and a favorable cost structure for data center operations.

Average Cost Of Power: Industrial electricity rates in the Ann Arbor area typically range from $0.09 to $0.11 per kWh as of September 2025. These competitive rates help reduce operational expenditures for high-density deployments. The state's power mix includes 11% renewables, primarily from wind generation.

Power Grid Reliability: The regional power grid is well-engineered and reliable, with infrastructure designed to support the area's significant industrial and research presence. Data centers in the market leverage this stability, often with multi-substation support to ensure high levels of uptime.

Market Access, Business & Tax Climate

Ann Arbor's strategic location and business-friendly environment make it an attractive site for digital infrastructure.

Proximity To Key Business Districts: Data centers in Ann Arbor are positioned to serve the University of Michigan, a major research institution, as well as the region's thriving technology, life sciences, and automotive sectors. This proximity enables low-latency connectivity for research computing and product development.

Regional Market Reach: The market provides effective coverage for Southern Michigan, Northwest Ohio, and can act as a disaster recovery site for deployments in Chicago or Detroit. It offers a low-latency solution for reaching end-users across the Great Lakes region.

Tax Advantage For Data Centers: Michigan offers significant tax benefits for data center operators and tenants. A key advantage is the sales and use tax exemption on qualified data center equipment, which directly lowers the capital expense of deploying and refreshing hardware.

Natural Disaster Risk

Ann Arbor 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 minimizes environmental threats to infrastructure and improves the predictability of operations. The primary risks to consider are severe weather events common to the Midwest.

Key environmental risks include:

• Tornado
• Severe Winter Weather
• Strong Wind
• Ice Storm
• Hail
• Heat and Cold Waves