Data Centers in Lansing
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Lansing – Low-Risk and Cost-Effective Midwest Hub
Lansing offers a compelling environment for companies needing resilient, secondary-market colocation. The region's extremely low natural disaster risk and favorable tax incentives make it an excellent choice for disaster recovery, business continuity, and serving applications for Michigan's government, academic, and industrial sectors.
Lansing: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a regional market; not a primary interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major hubs are Detroit and Chicago for cloud access via PNI/wave. |
| Power Cost | $0.08-0.10/kWh – as of September 2025 | Based on regional averages for industrial use. |
| Disaster Risk | Low (9.32/100) – as of September 2025 | One of the lowest-risk metros in the United States for natural disasters. |
| Tax Incentives | Yes | DC-specific sales and use tax exemptions on qualified equipment are available. |
| Sales Tax | 6.00% – as of Midyear 2025 | Michigan state sales tax rate. |
Network & Connectivity Ecosystem
Lansing is a stable and reliable secondary market, providing essential connectivity without the premium cost of a major hub.
Carrier Density & Carrier Neutrality: The market includes 3 unique network providers as of September 2025. Carrier-neutral facilities provide redundant access to these networks, offering a good balance of choice for most enterprise and disaster recovery workloads.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Lansing data centers. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through dedicated network links to interconnection hubs in Chicago or Detroit.
Internet Exchange Points (IXPs): Public peering is limited in Lansing. Most network interconnection is established through private peering arrangements within local data centers or routed through major exchange points in Chicago.
Bare Metal: Bare metal server options are available from providers operating within the Lansing market. Services from providers such as ColoCrossing can be deployed to meet specific compute requirements.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Lansing area are estimated to be between $0.08 and $0.10 per kWh as of September 2025. These competitive rates can significantly reduce operational expenses compared to larger coastal markets. Michigan's power mix includes 11% renewables.
Power Grid Reliability: The power grid supporting Lansing is well-engineered and stable, reflecting its status as a state capital. Local data centers are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Lansing data centers are strategically located to serve the State of Michigan government, Michigan State University, and the surrounding automotive and manufacturing industries. This proximity enables low-latency connectivity for critical local applications.
Regional Market Reach: The market is well-positioned to serve businesses across central Michigan. It also functions as an ideal disaster recovery location for primary operations in Detroit (approximately 90 miles away) or Chicago (approximately 220 miles away).
Tax Advantage For Data Centers: Michigan offers a significant sales and use tax exemption on qualified data center equipment for new or refurbished facilities. This incentive directly lowers the capital investment required for deploying and upgrading IT infrastructure.
Natural Disaster Risk
Lansing 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. This makes it one of the safest locations in the nation for critical infrastructure. The primary environmental risks are atmospheric, including tornado, strong wind, hail, and winter weather events like ice storms. The region has minimal exposure to seismic, wildfire, or widespread flooding events.
