Data Centers in Alexandria
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Alexandria, Minnesota – Cost-Effective & Stable Midwest Hub
Alexandria serves businesses seeking a secure, low-risk location for disaster recovery sites or workloads not requiring primary market latency. Its key advantages are significant state tax incentives and a very low natural disaster risk profile, which ensure operational stability and lower the total cost of ownership for critical infrastructure.
Alexandria: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity for general business needs, without the density of a primary hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major on-ramp hub is Minneapolis; access requires network provider extensions. |
| Power Cost | $0.08/kWh – as of 2021 | Competitive regional pricing helps control ongoing operational expenses for compute-heavy deployments. |
| Disaster Risk | Low (NRI Score: 24.66) – as of September 2025 | Very low national risk score enhances infrastructure resilience and data security. |
| Tax Incentives | Yes | State sales tax exemptions are available for qualified data center equipment and software. |
| Sales Tax | 6.875% – as of Midyear 2025 | Minnesota state sales tax rate applicable to non-exempt purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Alexandria market contains a focused group of fewer than 5 network providers as of September 2025. The primary data center in the market offers access to multiple carriers.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Alexandria as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via the nearest major interconnection hub, Minneapolis, using private network links or wavelength services.
Internet Exchange Points (IXPs): Public peering is not available directly in Alexandria. Most regional peering occurs through private interconnects or at the primary regional exchange point, MICE, located in Minneapolis.
Bare Metal: Bare metal server solutions are available from providers located in the broader Minnesota region, particularly out of Minneapolis. Options from providers like Hivelocity can serve workloads originating from Alexandria with minimal latency.
Power Analysis
Average Cost Of Power: Industrial power in the Alexandria area costs approximately $0.08/kWh as of 2021. This competitive rate makes the region financially attractive for managing the high operational costs associated with data center power and cooling.
Power Grid Reliability: The power grid supporting Alexandria is well-engineered and stable, typical of infrastructure in the upper Midwest. The regional grid provides reliable electricity necessary for maintaining high uptime standards for critical facilities.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Alexandria provide low-latency support to the city's local manufacturing, healthcare, and agricultural technology sectors. The location is strategic for businesses operating within central Minnesota that require local compute resources.
Regional Market Reach: Alexandria serves as an effective disaster recovery location for companies with a primary presence in the Minneapolis-St. Paul metropolitan area. It allows for geographic separation while remaining within the state.
Tax Advantage For Data Centers: Minnesota provides compelling tax incentives for qualifying data centers. A state sales tax exemption on computer and server equipment, software, and electricity significantly reduces both initial capital investment and long-term operating costs.
Natural Disaster Risk
Alexandria 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 include severe winter weather, including cold waves and ice storms, as well as tornados and strong wind events. Other monitored risks like drought and hail are present but pose a lesser threat to hardened data center facilities.
