Data Centers in Detroit

Detroit – Midwest Hub for Resilient Infrastructure

Detroit is a strategic colocation market for enterprises requiring resilient, cost-effective infrastructure with low latency to major Midwest and Canadian population centers. The region's low natural disaster risk and competitive power costs make it an ideal location for production workloads, disaster recovery, and data archiving, ensuring uptime and operational stability.

Detroit: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Detroit supports a healthy and competitive network environment with approximately 20 carriers operating within its 23 data centers, as of September 2025. This density ensures customers have multiple options for transit, transport, and private connectivity in carrier-neutral facilities.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Detroit, as of September 2025. The primary access point for dedicated cloud interconnection is Chicago, which hosts on-ramps for all major providers. Connectivity is typically established via private network links or wavelength services.

Internet Exchange Points (IXPs): The Detroit Internet Exchange (DET-IX) serves as the primary peering point for the region, enabling local networks to exchange traffic directly and reduce reliance on long-haul transit. Most large-scale peering occurs in Chicago.

Bare Metal: Bare metal server options are available from providers operating in the Detroit market, including specialists like phoenixNAP. These services offer dedicated compute capacity for performance-sensitive applications.

Power Analysis

Average Cost Of Power: Industrial electricity rates in the Detroit area are estimated between $0.09 and $0.11 per kWh, as of September 2025. This competitive pricing, combined with a grid mix that includes 11% renewables, makes the market attractive for managing operational expenses.

Power Grid Reliability: The power grid serving Detroit's primary data center zones is well-engineered and stable. Facilities are typically supported by redundant power feeds from multiple substations, providing the reliability required for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Detroit are strategically located to serve the region's massive automotive, manufacturing, and technology industries. This proximity provides low-latency connectivity essential for modern supply chain management, IoT, and R&D activities.

Regional Market Reach: Detroit provides excellent network reach to over 45 million people across the Great Lakes region and into southern Canada. It is a logical hub for serving consumers and businesses in Michigan, Ohio, Indiana, and Ontario.

Tax Advantage For Data Centers: Michigan offers significant tax advantages that lower the total cost of ownership for data center operators and customers. A sales and use tax exemption on qualified data center equipment directly reduces capital expenditures for new deployments and hardware 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 score places it among the safest metropolitan areas in the United States for critical infrastructure hosting. The primary environmental risks are atmospheric, including tornadoes, strong winds, hail, winter weather, and heat or cold waves. The region has minimal exposure to seismic, wildfire, or hurricane-related events.