Data Centers in Houghton
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Houghton, Michigan, United States – Resilient Edge Computing Hub
Houghton is an emerging edge market providing a stable, low-risk environment for specialized workloads. It is ideal for organizations requiring proximity to academic and research institutions in Michigan's Upper Peninsula, benefiting from favorable tax incentives and a low natural disaster profile.
Houghton, Michigan, United States: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a regional edge market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Chicago or Minneapolis; private network extensions are available. |
| Power Cost | $0.10 - $0.12/kWh (est.) | Industrial power costs are competitive for the region. |
| Disaster Risk | Low (NRI Score: 9.32) – as of September 2025 | Very low risk profile for all major natural hazards. |
| Tax Incentives | Yes | Includes sales and use tax exemptions for qualified data center equipment. |
| Sales Tax | 6.00% (Michigan) – as of September 2025 | State-level sales tax applies; specific equipment may be exempt. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market contains 2 providers as of September 2025. Carrier-neutral facilities offer connectivity options suitable for regional enterprise and edge computing requirements.
Direct Cloud On-Ramps: There are no direct cloud on-ramps in Houghton as of September 2025. Access to AWS, Google Cloud, Microsoft Azure, and other major clouds is achieved via network extensions from primary interconnection hubs like Chicago.
Internet Exchange Points (IXPs): Public peering is not established in Houghton. Most peering is conducted privately between carriers or routed through major exchange points in Chicago.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers like phoenixNAP and ColoCrossing can service the region from nearby data centers.
Power Analysis
Average Cost Of Power: Industrial electricity rates are estimated to be between $0.10 and $0.12 per kWh as of September 2025. These competitive power costs help reduce the total cost of ownership for compute-intensive operations. The state's power mix includes 11% renewables, primarily from wind.
Power Grid Reliability: The regional power grid is well-engineered to support local academic, research, and industrial needs. Infrastructure in the area provides reliable service for critical data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Houghton serve Michigan Technological University and other regional research, engineering, and technology firms. This proximity is critical for applications requiring low-latency access to institutional data and compute resources.
Regional Market Reach: Houghton is a strategic location for serving Michigan's Upper Peninsula and surrounding rural areas. It provides a key hub for edge computing, content delivery, and disaster recovery services for this geography.
Tax Advantage For Data Centers: Michigan offers significant tax benefits, including a sales and use tax exemption on qualified data center equipment. This incentive lowers the capital expenditure required to deploy and refresh hardware, directly improving return on investment.
Natural Disaster Risk
Houghton 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. The area is geologically stable and not prone to catastrophic events, making it a secure location for critical infrastructure. Primary environmental risks are weather-related, including strong wind, winter weather, hail, and tornadoes.
