Data Centers in Detroit

Detroit, Michigan, USA – Resilient Hub for Midwest Connectivity

Detroit provides a compelling alternative to primary data center markets like Chicago and Northern Virginia. For businesses prioritizing uptime, cost control, and low-risk operations, Detroit's infrastructure offers a stable platform for serving the Great Lakes region and for national disaster recovery strategies. The market is defined by its strong connectivity, favorable tax climate, and exceptionally low exposure to natural disasters.

Detroit, Michigan, USA: At A Glance

Network & Connectivity Ecosystem

Detroit's ecosystem is robust, with 23 data centers providing colocation and interconnection services across the metro area as of September 2025.

Carrier Density & Carrier Neutrality The market is served by over 15 network carriers, offering competitive options for transit, transport, and private line services. Numerous carrier-neutral facilities ensure that customers can connect to the providers that best suit their performance and budget requirements.

Direct Cloud On-Ramps There are no native public cloud on-ramps located directly within Detroit as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, through dedicated network connections to the primary access hub in Chicago. Private network extensions and wave services provide secure, low-latency access.

Internet Exchange Points (IXPs) The Detroit Internet Exchange (DET-IX) is the market's primary peering point. It facilitates efficient local traffic exchange, reducing latency and improving network performance for businesses operating within the region.

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

Power Analysis

Average Cost Of Power Industrial electricity rates in the Detroit market typically range from $0.09 to $0.11/kWh as of September 2025. These competitive and stable power costs allow for more predictable operational spending compared to more volatile coastal markets. The state's energy mix is primarily generated from fossil fuels and nuclear sources, with renewables contributing approximately 11%.

Power Grid Reliability The power grid serving Detroit's primary data center clusters is well-engineered and reliable. Colocation facilities are supported by redundant power feeds and multiple substations, ensuring high levels of uptime for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in the Detroit area, particularly in suburbs like Southfield, are positioned to serve the region's core industries. These include automotive, advanced manufacturing, healthcare, finance, and technology. Low-latency connections are critical for the R&D, IoT, and supply chain applications that drive this economy.

Regional Market Reach Detroit is a strategic location for reaching a large and economically significant area. It effectively serves the entire state of Michigan, northern Ohio, and parts of Ontario, Canada, providing a single point of presence to connect with millions of consumers and businesses.

Tax Advantage For Data Centers Michigan provides a valuable sales and use tax exemption on qualified data center equipment, including servers, racks, and cooling systems. This incentive directly reduces the capital expenditure required for new deployments and technology refreshes.

Natural Disaster Risk

Detroit has a very low natural disaster risk profile, with a FEMA National Risk Index score of 9.32 as of September 2025. This makes it an ideal location for primary infrastructure and a superior choice for disaster recovery sites.

The main environmental risks are manageable, weather-related events. Key considerations include:

• Tornado
• Strong Wind
• Winter Weather & Ice Storms
• Cold & Heat Waves