Data Centers in Albert Lea
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Albert Lea, MN, USA – Cost-Effective & Resilient Infrastructure
Albert Lea offers a compelling environment for businesses prioritizing operational stability and cost efficiency. As a secondary market, it provides access to favorable power rates and significant tax incentives, making it a strong choice for disaster recovery sites and latency-tolerant applications that benefit from a very low-risk natural disaster profile.
Albert Lea, MN, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a secondary market, relying on regional hubs for interconnection. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Minneapolis. Private network extensions provide dedicated access. |
| Power Cost | $0.08/kWh – as of 2021 | Competitive industrial power rates contribute to lower operational expenditures. |
| Disaster Risk | Low (24.66) – as of September 2025 | Very low risk profile for natural disasters enhances uptime and service continuity. |
| Tax Incentives | Yes | State sales tax exemptions are available for qualified data center investments and equipment. |
| Sales Tax | 6.875% – as of September 2025 | Standard state sales tax rate applies to non-exempt purchases. |
Network & Connectivity Ecosystem
Albert Lea functions as a strategic edge location, with primary connectivity routed through the nearby Minneapolis metropolitan area.
Carrier Density & Carrier Neutrality: The market contains a focused number of providers, with access to a broader ecosystem of over 10 carriers in the region as of September 2025. Facilities are typically carrier-neutral, allowing for flexible network deployments.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Albert Lea as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via private network links to major interconnection hubs in Minneapolis.
Internet Exchange Points (IXPs): Peering is primarily conducted through private network interconnects or via the MICE Internet Exchange in Minneapolis. This setup ensures reliable and efficient traffic exchange for reaching end-users across the Upper Midwest.
Bare Metal: Bare metal server options are available, primarily through providers offering services out of the larger Minneapolis market. Companies like Hivelocity and phoenixNAP can serve the region, providing dedicated compute resources for performance-intensive workloads.
Power Analysis
The power infrastructure in Albert Lea is both cost-effective and reliable, supporting continuous data center operations.
Average Cost Of Power: Industrial power rates average $0.08/kWh as of 2021. This competitive pricing structure allows businesses to significantly reduce their ongoing operational costs compared to many primary US markets.
Power Grid Reliability: The regional grid is well-engineered, with infrastructure designed to support industrial and agricultural needs. Local data centers typically feature redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Albert Lea provides a favorable business environment, combining strategic location with compelling financial incentives.
Proximity To Key Business Districts: The market serves southern Minnesota and northern Iowa, providing a key location for agriculture, manufacturing, and logistics companies in the region. Its position along major transportation corridors facilitates access and support.
Regional Market Reach: From Albert Lea, digital services can effectively reach a multi-state area including Minnesota, Iowa, Wisconsin, and the Dakotas. It is an effective location for delivering content and applications to this underserved segment of the Midwest.
Tax Advantage For Data Centers: Minnesota provides significant sales tax exemptions on data center equipment, software, and electricity for qualifying facilities. This state-level incentive program directly lowers the capital and operational expense of building and running a data center.
Natural Disaster Risk
Albert Lea 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 minimizes the threat of environmental disruptions to data center operations.
The primary risks for the area are severe winter weather, high winds, and drought. The area also experiences occasional threats from hail, tornadoes, and wildfire, though these are less frequent. The absence of major seismic, hurricane, or coastal flooding risks makes it an exceptionally secure location for critical infrastructure.
