Data Centers in Alexandria
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Alexandria, Minnesota – A Stable & Cost-Effective Edge Location
Alexandria, Minnesota, is an excellent choice for businesses seeking a secure and cost-effective secondary or edge data center location in the Upper Midwest. The market combines a very low natural disaster risk profile with strong state-level tax incentives, directly reducing operational costs and safeguarding critical digital assets. This makes it a compelling location for disaster recovery, content delivery, and latency-sensitive applications serving the region.
Alexandria, Minnesota: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a secondary market, ideal for backup and disaster recovery. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hub is Minneapolis. Private network extensions are readily available. |
| Power Cost | 8.43¢/kWh, as of 2021 | Competitive industrial rates contribute to a lower total cost of ownership. |
| Disaster Risk | Low (NRI Score: 24.66), as of September 2025 | One of the lowest natural hazard risk profiles in the United States. |
| Tax Incentives | Yes | State sales tax exemptions for qualified data center projects and equipment. |
| Sales Tax | 6.875% State Sales Tax, as of 2025 | Exemptions apply to data center equipment, reducing capital expenditures. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market provides access to 3 core network providers as of September 2025, suitable for redundant enterprise connectivity. Colocation facilities offer carrier-neutral environments, enabling choice and cost control for interconnection.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Alexandria as of September 2025. Secure, private connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are established through network providers via the primary regional hub in Minneapolis.
Internet Exchange Points (IXPs): Peering is primarily handled privately or through transit providers connecting to the major exchange points in Minneapolis, ensuring efficient traffic routing throughout the Upper Midwest.
Bare Metal: Bare metal solutions are available from providers offering services in the region, such as Hivelocity or phoenixNAP, allowing for dedicated compute without capital expenditure.
Power Analysis
Average Cost Of Power: The industrial electricity rate in this market is approximately 8.43¢/kWh, as of 2021. This competitive rate helps significantly lower the total cost of operation for power-intensive workloads compared to many primary US markets.
Power Grid Reliability: The regional power grid is well-engineered for stability. Data centers in the area are typically supported by redundant power feeds from separate substations to maximize uptime and ensure continuous operation.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Located strategically along the I-94 corridor, Alexandria provides low-latency access to businesses in central Minnesota. It also serves as an effective disaster recovery site for the Minneapolis-St. Paul metropolitan area.
Regional Market Reach: From Alexandria, digital services can effectively reach across the Upper Midwest. A single deployment can serve the major markets of Minneapolis-St. Paul and Fargo-Moorhead with low latency.
Tax Advantage For Data Centers: Minnesota provides significant tax advantages, including a state sales tax exemption on data center equipment, software, and electricity for qualifying facilities. This incentive directly reduces the upfront capital investment and ongoing operational expenses for new and expanding data centers.
Natural Disaster Risk
Alexandria has a very low natural disaster risk profile, with a National Risk Index score of 24.66, as of September 2025. The primary environmental risks are atmospheric, including tornadoes, strong winds, hail, and severe winter weather such as ice storms and cold waves. The region has no meaningful exposure to hurricanes, earthquakes, or coastal flooding, making it an exceptionally stable location for critical infrastructure.
