Data Centers in Lansing
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Lansing, Michigan – Stable & Cost-Effective Digital Hub
Lansing offers a compelling environment for businesses seeking a secondary disaster recovery site or a primary location serving the Great Lakes region. The market's extremely low natural disaster risk and significant tax incentives create a financially attractive and resilient choice for critical infrastructure. This combination ensures high uptime and a lower total cost of ownership.
Lansing, Michigan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; not a primary national interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to major clouds requires network extensions to hubs like Chicago. |
| Power Cost | $0.09 - $0.11/kWh | Industrial electricity rates are competitive for the Midwest region. |
| Disaster Risk | Low (NRI Score: 9.32) | One of the lowest-risk metros in the United States for natural disasters. |
| Tax Incentives | Yes | Includes sales and use tax exemptions for qualified data center equipment. |
| Sales Tax | 6.00% (Michigan State) | As of Mid-Year 2025. |
Network & Connectivity Ecosystem
Lansing is a strategic secondary market with reliable connectivity options for reaching end-users throughout Michigan and the broader Midwest.
Carrier Density & Carrier Neutrality Carrier availability is focused, with over 3 providers present in the market's main colocation facilities as of September 2025. The environment supports carrier-neutral interconnection, providing choice for network redundancy and routing.
Direct Cloud On-Ramps There are no direct, in-market cloud on-ramps in Lansing. Secure, low-latency connections to providers like AWS, Google Cloud (GCP), and Microsoft Azure are typically established through dedicated network circuits to the primary interconnection hub in Chicago.
Internet Exchange Points (IXPs) Public peering is limited within Lansing. Most network peering is conducted privately between carriers or established through IXPs in major nearby markets such as Detroit and Chicago.
Bare Metal Bare metal server options are available from providers that serve the region. Companies like ColoCrossing can provide dedicated server solutions from facilities in or near the Lansing market.
Power Analysis
Lansing's power infrastructure is stable and competitively priced, supporting the needs of modern data center operations.
Average Cost Of Power Industrial power rates typically range from $0.09 to $0.11 per kWh, as of September 2025. These costs are in line with or slightly below the average for the Midwest, making large-scale deployments financially viable. The state's power mix includes approximately 11% renewables.
Power Grid Reliability The power grid serving Lansing's commercial and industrial corridors is well-engineered for reliability. Data centers in the area are typically supported by redundant power feeds from separate substations to ensure consistent uptime.
Market Access, Business & Tax Climate
Lansing provides a business-friendly environment with a strong focus on reducing the operational costs of technology infrastructure.
Proximity To Key Business Districts Data centers in Lansing are positioned to serve the state government, Michigan State University, and the extensive automotive and manufacturing supply chains that dominate the regional economy. This proximity enables low-latency services for both public and private sector clients.
Regional Market Reach From Lansing, organizations can effectively serve the entire state of Michigan, including major markets like Detroit and Grand Rapids. It also functions as an excellent disaster recovery location for primary deployments in Chicago, located just outside the primary blast radius.
Tax Advantage For Data Centers Michigan provides significant tax incentives that directly reduce capital expenditures for data center operators and tenants. The state's sales and use tax exemption on qualified data center equipment, including servers and network gear, can substantially lower the cost of building out or refreshing 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 building resilient infrastructure. Key risks, while minimal, include winter weather, strong wind, tornados, and hail.
