Data Centers in Grand Forks
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Grand Forks, Minnesota – Low-Risk, Low-Cost Compute
Executive Summary
Grand Forks is an emerging market ideal for disaster recovery and secondary compute workloads that benefit from low operational costs. The region's extremely low natural disaster risk and competitive power prices provide a stable environment for businesses prioritizing uptime and budget predictability. This market is a strong choice for agricultural tech, logistics, and academic computing.
Grand Forks, Minnesota: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though not a primary national interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Minneapolis; private connectivity is available. |
| Power Cost | $0.08/kWh – as of 2021 | Competitive industrial electricity rates help control ongoing operational expenses. |
| Disaster Risk | Low (FEMA Score: 24.66) – as of September 2025 | One of the lowest-risk profiles in the United States for natural disasters. |
| Tax Incentives | Yes | Minnesota offers a state sales tax exemption for qualifying data center equipment and software. |
| Sales Tax | 6.875% – as of mid-2025 | Standard state sales tax applies to non-exempt purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market provides access to over 2 carriers, as of September 2025. Carrier-neutral facilities offer connectivity options, though the ecosystem is more concentrated than in larger national hubs.
Direct Cloud On-Ramps: Grand Forks has no direct cloud on-ramps, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via the primary regional hub in Minneapolis. Private network extensions can establish dedicated and secure links.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most network peering is conducted privately or through exchange points in major hubs like Minneapolis.
Bare Metal: Bare metal server options are available, providing dedicated compute capacity for performance-sensitive workloads. Providers like ColoCrossing can serve deployments in regional markets like Grand Forks.
Power Analysis
Average Cost Of Power: Industrial power costs average $0.08/kWh, as of 2021. This competitive rate makes Grand Forks attractive for managing the total cost of ownership for compute-intensive infrastructure.
Power Grid Reliability: The regional power grid is well-engineered to handle local climate demands, with infrastructure designed for resilience. Data centers in the area are supported by reliable utility services to maintain uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Grand Forks serve local academic and research institutions, including the University of North Dakota. The location is also strategic for the growing unmanned aerial systems (UAS) and agricultural technology sectors in the region.
Regional Market Reach: The market effectively serves businesses across North Dakota and western Minnesota. It provides a low-latency option for applications supporting the Upper Midwest's logistics, agriculture, and aerospace industries.
Tax Advantage For Data Centers: Minnesota provides significant tax incentives for qualifying projects. The state-level sales tax exemption on data center equipment, software, and electricity lowers both initial capital investment and ongoing operational costs.
Natural Disaster Risk
Grand Forks 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, including cold waves and ice storms. Other notable environmental hazards include strong wind, tornados, hail, and potential drought conditions. The risk from events like earthquakes or hurricanes is negligible.
