Data Centers in Kalamazoo

Kalamazoo – Low-Risk Midwest Colocation Hub

Executive Summary

Kalamazoo provides a compelling secondary market for colocation, ideal for disaster recovery and latency-sensitive applications serving Southwestern Michigan. Its primary advantage is an exceptionally low natural disaster risk profile, combined with state-level tax incentives that reduce capital expenditures on data center equipment. This market offers a stable, cost-effective alternative to the higher-risk, higher-cost primary hubs of Chicago and Detroit.

Kalamazoo: At A Glance

Network & Connectivity Ecosystem

Kalamazoo is a strategic edge location, with its connectivity ecosystem designed for reliability and access to larger surrounding markets.

Carrier Density & Carrier Neutrality The market contains over 2 carriers as of September 2025. While modest, these providers offer resilient network paths, with most enterprise connectivity backhauled through carrier hotels in Chicago or Southfield, Michigan.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Kalamazoo as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through dedicated circuits or wavelength services to interconnection hubs in Chicago.

Internet Exchange Points (IXPs) Public peering is not a feature of the local market. Most network peering for Kalamazoo-based infrastructure is conducted privately or through major exchanges in Chicago, such as the Equinix Chicago IBX.

Bare Metal Bare metal server options are available, typically provisioned from providers located in larger Midwest hubs. Services from providers like Hivelocity and ColoCrossing can serve the region effectively, offering dedicated infrastructure without the capital investment.

Power Analysis

Average Cost Of Power Industrial electricity rates in the Kalamazoo area range from $0.08 to $0.11 per kWh, as of September 2025. These competitive rates help manage the operational costs of high-density computing. The state's power mix includes 11% renewables, with wind power being the dominant source.

Power Grid Reliability The power grid serving Kalamazoo's commercial and industrial zones is well-engineered for uptime. Infrastructure is primarily supported by redundant feeds from multiple substations, ensuring stable power delivery for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Kalamazoo are well-positioned to serve the region's life sciences, manufacturing, and education sectors, including Western Michigan University. The market provides low-latency connectivity for local enterprise and research operations.

Regional Market Reach Strategically located between Chicago and Detroit, Kalamazoo serves as an excellent disaster recovery site for businesses in those primary markets. It can effectively deliver services to the entirety of Southwestern Michigan and Northern Indiana.

Tax Advantage For Data Centers Michigan provides significant tax advantages for data center operators and tenants. The state's sales and use tax exemptions on qualified data center equipment directly reduce the cost of building, expanding, or refreshing critical IT infrastructure.

Natural Disaster Risk

Kalamazoo 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 safe location for critical infrastructure and data archiving.

Key risks are primarily weather-related and include:

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