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Data Centers in Grand Rapids

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Grand Rapids – A Low-Risk Midwestern Hub

Grand Rapids is a strong choice for organizations prioritizing disaster resilience and operational stability for their digital infrastructure. The market serves as a cost-effective secondary or disaster recovery site for enterprises in primary Midwest hubs like Chicago, ensuring business continuity without sacrificing regional access.

Grand Rapids: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity, suitable for disaster recovery and local workloads.
Direct Cloud On-Ramps0 – as of September 2025Closest major hub is Chicago; private network extensions are available.
Power Cost$0.09/kWh – as of September 2025Costs are competitive for the region, supporting predictable operational expenses.
Disaster RiskLow (9.32) – as of September 2025Very low exposure to major natural disasters, enhancing uptime.
Tax IncentivesYesIncludes sales and use tax exemptions on qualified data center equipment.
Sales Tax6.00% – as of September 2025Michigan state sales tax rate.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Grand Rapids provides access to over 7 unique network carriers as of September 2025. The market's facilities offer carrier-neutral environments, allowing for resilient and diverse network architectures.

Direct Cloud On-Ramps: There are no direct, dedicated cloud on-ramps within Grand Rapids data centers as of September 2025. Businesses connect to major cloud providers via network extensions or private lines to the primary hub in Chicago, which offers a full ecosystem of cloud regions.

Internet Exchange Points (IXPs): Public peering is limited within the market. Most network peering is conducted privately between carriers or routed through major exchange points in Chicago.

Bare Metal: Bare metal server options are available in the region, providing dedicated compute for performance-sensitive applications. Providers such as Hivelocity and ColoCrossing can serve local demand.

Power Analysis

Average Cost Of Power: Industrial electricity rates in the Grand Rapids area average around $0.09/kWh as of September 2025, based on regional data. This competitive pricing helps lower total operational costs for compute-heavy deployments. The state's power mix is primarily composed of fossil fuels and nuclear, with renewables contributing approximately 11%.

Power Grid Reliability: The electrical grid serving the Grand Rapids market is well-engineered and stable. Data center operators benefit from redundant power feeds and substation diversity typical of modern industrial parks, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Grand Rapids are positioned to serve the region's strong manufacturing, healthcare, and technology sectors. Proximity to these industries allows for low-latency connectivity essential for production systems and data processing.

Regional Market Reach: From Grand Rapids, organizations can effectively serve the entire state of Michigan and provide a strategic disaster recovery location for infrastructure located in the primary Midwest market of Chicago.

Tax Advantage For Data Centers: Michigan offers significant tax benefits for data center operators and tenants. A key incentive is the sales and use tax exemption on qualified data center equipment, which directly reduces the capital expenditure required for new builds and hardware refreshes.

Natural Disaster Risk

Grand Rapids 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 exceptionally stable location for critical infrastructure requiring maximum uptime. The primary environmental risks are severe winter storms, hail, strong winds, and occasional tornadoes. The area has minimal exposure to catastrophic events like earthquakes, wildfires, or hurricanes.

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