Data Centers in Minnesota

Minnesota, USA – Resilient & Cost-Effective Infrastructure

Minnesota offers a compelling combination of low power costs, minimal disaster risk, and significant tax incentives for data center operators. This makes it an ideal location for enterprises seeking high-availability infrastructure for critical workloads without the premium costs of coastal markets. The state's connectivity ecosystem provides reliable access to the rest of North America, ensuring low-latency performance for a broad user base.

Minnesota, USA: At A Glance

Network & Connectivity Ecosystem

Minnesota has a dense and diverse connectivity environment, anchored by facilities in the Minneapolis-St. Paul metro area. The state serves as a key network aggregation point for the Upper Midwest.

Carrier Density & Carrier Neutrality: The market includes over 34 unique network providers as of September 2025. Numerous carrier-neutral facilities offer extensive choice for interconnection, ensuring competitive pricing and high-quality service.

Direct Cloud On-Ramps: With 4 dedicated cloud on-ramps providing access to 11 cloud regions as of September 2025, Minnesota offers excellent multi-cloud access. Direct, private connections are available to major cloud platforms, including AWS and Microsoft Azure.

Internet Exchange Points (IXPs): While much of the peering is private, the Midwest Internet Cooperative Exchange (MICE) in Minneapolis facilitates local traffic exchange. For broader peering, many networks connect directly to major national exchanges in Chicago.

Bare Metal: Bare metal server options are readily available from multiple providers. Companies like Hivelocity and phoenixNAP offer dedicated server solutions in the region for workloads requiring direct hardware access.

Power Analysis

Minnesota's power infrastructure is a primary advantage for data center operators, offering both low costs and high reliability.

Average Cost Of Power: The average industrial electricity cost is approximately $0.08/kWh as of 2021. This rate is substantially lower than many other US markets and directly reduces the total cost of ownership for high-density deployments.

Power Grid Reliability: The electrical grid, particularly in the Minneapolis-St. Paul area, is well-engineered with redundant systems and support from multiple substations. This design provides the stability and uptime required for mission-critical operations.

Market Access, Business & Tax Climate

Minnesota provides a favorable business environment with strategic access to regional economic centers.

Proximity To Key Business Districts: Data centers are located near the Minneapolis-St. Paul metropolitan area, home to numerous Fortune 500 companies in sectors like healthcare, retail, and finance. This proximity allows for low-latency connections to corporate headquarters and key business operations.

Regional Market Reach: From its central location, Minnesota effectively serves the entire Upper Midwest region, including Wisconsin, Iowa, and the Dakotas. It is a strategic hub for content delivery and application performance across this multi-state area.

Tax Advantage For Data Centers: Minnesota offers a significant sales tax exemption for qualifying data centers on computer hardware, software, and electrical equipment. This incentive substantially lowers the initial capital investment and ongoing refresh costs for large-scale deployments.

Natural Disaster Risk

Minnesota has a very low natural disaster risk profile, with a FEMA National Risk Index score of 24.66 out of 100 as of September 2025. This makes it one of the safest locations in the United States for critical infrastructure. The primary environmental risks are manageable through standard facility design and operational planning. Key hazards include severe winter weather, tornados, strong wind events, and heat waves.