Data Centers in Lansing

Lansing – Reliable Infrastructure for the Midwest

Lansing serves as a strategic Midwestern hub for organizations requiring stable, low-risk colocation with direct access to Michigan's political and educational centers. This market provides a secure environment for mission-critical data, ensuring operational continuity for state-level enterprises and regional service providers.

Lansing: At A Glance

Network & Connectivity Ecosystem

Lansing provides a resilient network environment focused on regional stability and consistent performance. As a secondary market, it offers the necessary infrastructure to support government, education, and healthcare sectors with reliable uptime.

• Carrier Density & Carrier Neutrality: Carrier count: over 5. The market features 5–10 providers, including Lumen and Zayo, ensuring diverse routing for regional and national traffic, as of September 2025.
• Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. There are no direct on-ramps in the immediate metro area. Most enterprises utilize private waves or PNI to reach AWS, Google Cloud (GCP), or Microsoft Azure in Chicago, as of September 2025.
• Internet Exchange Points (IXPs): Public peering exchanges are limited within the city. Most local peering occurs through private interconnects or by backhauling traffic to major exchanges in Chicago or Detroit, as of September 2025.
• Bare Metal: Local bare metal options are available through specialized regional providers, with broader service availability through ColoCrossing in nearby markets, as of September 2025.

Power Analysis

Lansing benefits from a stable utility environment that supports the high-density requirements of modern data centers.

• Average Cost Of Power: Industrial electricity rates are estimated between $0.07 and $0.09/kWh, as of September 2025. These rates offer a cost-effective alternative to more expensive coastal markets, helping manage long-term operational budgets.
• Power Grid Reliability: The local grid is purpose-built to support the state capital and major research institutions. It utilizes redundant multi-substation support to ensure reliable delivery for critical infrastructure.

Market Access, Business & Tax Climate

The business climate in Lansing is characterized by its proximity to state leadership and a focus on long-term infrastructure investment.

• Proximity To Key Business Districts: Data centers here are located near the Michigan State Capitol and Michigan State University. This proximity is vital for organizations providing services to government agencies and large-scale educational platforms.
• Regional Market Reach: Lansing is centrally located, making it an ideal site for serving the Detroit and Grand Rapids markets. It functions effectively as a disaster recovery location for the broader Great Lakes area.
• Tax Advantage For Data Centers: Michigan provides a specific sales and use tax exemption for qualified data center equipment to encourage infrastructure growth. This financial benefit helps reduce the initial cost of deploying high-performance hardware.

Natural Disaster Risk

Lansing maintains a Low risk profile with a FEMA NRI score of 9.32, as of September 2025. The region is largely shielded from the most destructive natural events, making it a dependable choice for primary or secondary sites.

• Risk Rating: Low (9.32), as of September 2025.
• Main Natural Hazards:
  • Winter Weather
  • Tornadoes
  • Strong Winds
  • Ice Storms
  • Heat Waves
  • Hail

Coastal risks such as Tsunami or Coastal Flooding are not applicable to this inland location. Other natural hazards are considered minor.