Data Centers in Grand Forks
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Grand Forks, Minnesota, USA – Low-Cost, Low-Risk Colocation
Grand Forks is an emerging market ideal for organizations prioritizing operational efficiency and disaster avoidance. Its low power costs and minimal natural hazard exposure make it a strong contender for secondary disaster recovery sites or for hosting workloads that are not latency-sensitive to major coastal hubs. This location offers a stable, predictable, and budget-friendly environment for critical infrastructure.
Grand Forks, Minnesota, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though it lacks the density of a primary interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub is Minneapolis; private connectivity options are available. |
| Power Cost | $0.08/kWh, as of 2021 | Very competitive industrial power rates, significantly below the national average. |
| Disaster Risk | Low (Score: 24.66), as of September 2025 | One of the lowest-risk profiles in the country for natural disasters. |
| Tax Incentives | Yes | State sales tax exemptions are available for qualifying data center equipment and software. |
| Sales Tax | 6.875%, as of 2025 | Minnesota state sales tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market includes 2 providers, as of September 2025. Carrier density is limited, reflecting its status as a smaller edge market. Carrier-neutral facilities provide access to key regional networks.
Direct Cloud On-Ramps: The market has no direct cloud on-ramps, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the primary interconnection hub in Minneapolis, accessible through private network extensions.
Internet Exchange Points (IXPs): Public peering is not established directly within Grand Forks. Most network peering is conducted privately or routed through IXPs located in Minneapolis to optimize traffic flow across the Upper Midwest.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-intensive applications. Providers like ColoCrossing can serve customers in this region.
Power Analysis
Average Cost Of Power: Industrial power costs in the Grand Forks area are approximately $0.08/kWh, as of 2021. This competitive rate offers a significant operational cost advantage compared to most primary US data center markets.
Power Grid Reliability: The regional power grid is well-engineered to support industrial and agricultural needs, with reliable energy delivery. Data centers in the area are supported by resilient infrastructure designed to maintain uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Grand Forks are positioned to serve the University of North Dakota, the region's growing aerospace and unmanned aircraft systems (UAS) industry, and agricultural technology companies. This proximity provides low-latency access for research, development, and operational workloads.
Regional Market Reach: The market effectively serves businesses across North Dakota, western Minnesota, and South Dakota. It is a strategic location for delivering services and content to the northern plains states.
Tax Advantage For Data Centers: Minnesota provides compelling tax incentives for data center operators and tenants. The state offers a sales tax exemption on the purchase of computer equipment, software, and power infrastructure for qualifying facilities, which directly reduces capital expenditures.
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. The area is not exposed to major threats like earthquakes or hurricanes.
The primary environmental risks to consider are severe winter weather, including ice storms and cold waves, along with occasional tornadoes, strong winds, and drought conditions.
