Data Centers in Luzerne
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Luzerne, Michigan – Low-Risk Rural Colocation
Luzerne offers a compelling option for secondary disaster recovery sites or workloads that do not require ultra-low latency to major metropolitan hubs. Its extremely low natural disaster risk profile provides a stable and secure environment for critical infrastructure, protecting valuable assets from environmental threats.
Luzerne, Michigan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity suitable for backup and general business applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Chicago and Detroit; private connections are available. |
| Power Cost | $0.09-0.12/kWh (est.) | Industrial power costs are generally competitive within the region. |
| Disaster Risk | Low (9.32 Score) – as of September 2025 | One of the lowest risk profiles in the nation. |
| Tax Incentives | Yes | Includes sales and use tax exemptions on qualified data center equipment. |
| Sales Tax | 6.00% – as of September 2025 | Standard Michigan state sales tax applies. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The single facility in Luzerne provides access to a select number of regional and national carriers, as of September 2025. Carrier neutrality ensures choice for connectivity, though the ecosystem is not as dense as in primary markets.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Luzerne, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through network providers with points of presence in major hubs like Chicago or Detroit. Private network extensions offer secure, dedicated access.
Internet Exchange Points (IXPs): No public IXPs are located in Luzerne. Peering is typically handled privately or routed through major exchange points in larger Midwestern cities, ensuring efficient traffic exchange.
Bare Metal: Bare metal server options are available through providers that can provision equipment into the local data center. This allows for dedicated, high-performance computing without the overhead of hardware management. Options from providers like ColoCrossing can serve this market.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the region are estimated to be between $0.09 and $0.12 per kWh, as of September 2025. These competitive power costs make running sustained IT workloads more economical.
Power Grid Reliability: The regional power grid is engineered for reliability, supporting the needs of a rural and light industrial customer base. Infrastructure serving the data center is designed to provide stable and consistent power for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Luzerne is a rural market, serving as a remote location rather than a hub for a specific business district. Its value lies in its distance from dense urban centers, providing geographic separation for disaster recovery strategies.
Regional Market Reach: From its location in northern Michigan, the data center can serve businesses across the state and the broader Great Lakes region looking for a secure secondary or tertiary site.
Tax Advantage For Data Centers: Michigan provides significant tax incentives for data centers. The state offers a sales and use tax exemption on qualified equipment purchases, which directly lowers the capital expenditure for new deployments and hardware refreshes.
Natural Disaster Risk
Luzerne 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 an exceptionally safe location for deploying critical infrastructure. The primary environmental risks are severe winter weather, wind, hail, and wildfire. The area has minimal exposure to catastrophic events like earthquakes, hurricanes, or widespread flooding.
