Data Centers in Albert Lea
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Albert Lea – Strategic Regional Resilience and Midwest Edge Connectivity
Executive Summary
Albert Lea serves as a critical edge location for businesses requiring stable regional presence and low-latency access to the Minneapolis markets. It offers a secure environment for disaster recovery and regional workload distribution, ensuring high uptime without the premium costs associated with major metropolitan hubs.
Albert Lea: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional access via primary carriers. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest primary hub is Minneapolis. |
| Power Cost | $0.08/kWh, as of September 2025 | Competitive rates for the Upper Midwest. |
| Disaster Risk | Low (24.66), as of September 2025 | Very low risk for operational safety. |
| Tax Incentives | Yes | Sales tax exemptions for qualified facilities. |
| Sales Tax | 6.88% Sales Tax, as of September 2025 | Standard Minnesota state sales tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 1, as of September 2025. As a focused regional market, Albert Lea offers a streamlined selection of regional and national carriers to support diverse routing requirements.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. No direct on-ramps are present locally as of September 2025. Minneapolis is the closest primary cloud hub for private network interconnects or wave connectivity to AWS, Google Cloud (GCP), and Microsoft Azure.
Internet Exchange Points (IXPs): Local peering is primarily managed through private interconnects or by routing to the Midwest Internet Cooperative Exchange (MICE) in Minneapolis to optimize regional traffic.
Bare Metal: General availability is supported by regional providers, with national options such as Hivelocity or ColoCrossing serving the broader Minnesota area as of September 2025.
Power Analysis
Average Cost Of Power: Industrial electricity is approximately $0.08/kWh, as of September 2025. These rates provide a significant cost advantage over coastal markets, directly improving the bottom line for power-heavy deployments.
Power Grid Reliability: The local grid is purpose-built for industrial stability. It is supported by redundant configurations and multiple substations to ensure consistent delivery for high-availability infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Strategically located at the intersection of I-35 and I-90, these facilities offer immediate proximity to logistics and manufacturing hubs in Southern Minnesota.
Regional Market Reach: This location efficiently serves the Minneapolis–Saint Paul metro, Northern Iowa, and Western Wisconsin with minimal latency for regional users.
Tax Advantage For Data Centers: Minnesota provides a state sales tax exemption on equipment and software for qualified data center investments. This creates a more predictable capital expenditure model for scaling IT operations and managing long-term hardware refreshes.
Natural Disaster Risk
Risk Score: Low (24.66), as of September 2025.
Main Hazards: The primary natural risks for this region include Cold Wave, Tornado, Ice Storm, Winter Weather, and Strong Wind.
Analysis: Albert Lea maintains an exceptionally low risk profile compared to national averages. Most hazards are related to seasonal weather patterns that are managed through standard facility hardening and resilient HVAC systems. Other natural hazards are considered minor or not material to local operations.
