Data Centers in Grand Rapids

Grand Rapids – A Low-Risk Midwest Colocation Hub

Grand Rapids is a compelling secondary market for enterprises seeking cost-effective and resilient digital infrastructure. Its extremely low natural disaster risk and valuable tax incentives make it an ideal location for disaster recovery sites and production workloads serving the Great Lakes region. This market delivers stable, reliable colocation without the high costs of primary coastal hubs.

Grand Rapids: At A Glance

Network & Connectivity Ecosystem

Grand Rapids provides a reliable connectivity ecosystem well-suited for enterprise and disaster recovery applications. While not a primary national hub, the market offers sufficient carrier diversity and access to major networks.

Carrier Density & Carrier Neutrality: The market features over 7 network providers as of September 2025, with multiple carrier-neutral facilities offering a choice of local and national carriers. This environment ensures competitive pricing and resilient network design options.

Direct Cloud On-Ramps: There are no native public cloud on-ramps within Grand Rapids data centers. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via private network extensions to the primary interconnection hub in Chicago.

Internet Exchange Points (IXPs): The local peering scene is anchored by the Grand Rapids Internet Exchange (GR-IX). Its presence helps facilitate low-latency traffic exchange between regional networks, content providers, and enterprises.

Bare Metal: Bare metal server solutions are available from providers operating within the Grand Rapids market. This allows businesses to deploy dedicated compute resources rapidly, with providers like ColoCrossing offering services in the region.

Power Analysis

Average Cost Of Power: Industrial electricity rates in the Grand Rapids area typically range from $0.09 to $0.11 per kWh, as of September 2025. This competitive pricing structure provides a significant advantage for managing the high operational costs associated with dense compute and storage environments. The state's energy mix includes 11% renewables.

Power Grid Reliability: The power grid serving Grand Rapids is well-engineered and stable, with modern infrastructure supporting key commercial and industrial zones. Data centers in the market are typically fed by redundant power sources from utility substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Grand Rapids are positioned to serve the city’s diverse economy, which includes advanced manufacturing, healthcare, and information technology. This proximity enables low-latency performance for local and regional businesses requiring real-time data processing.

Regional Market Reach: Strategically located in Western Michigan, Grand Rapids is an effective hub for serving the entire state, as well as nearby markets like Detroit and Chicago. Its central position in the Great Lakes region makes it a strong candidate for disaster recovery and business continuity operations.

Tax Advantage For Data Centers: Michigan offers compelling tax incentives that directly lower the cost of building and equipping a data center. The state provides a sales and use tax exemption on qualified data center equipment, which significantly reduces the capital expenditure required for new deployments or hardware refreshes.

Natural Disaster Risk

Grand Rapids has a very low risk of natural disasters, with a FEMA National Risk Index score of 9.32 out of 100, as of September 2025. This makes the region one of the safest in the country for deploying critical infrastructure that requires maximum uptime and physical security. Key risks are limited to regional weather events.

The main environmental threats to consider are:

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