Data Centers in Grand Forks
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Grand Forks, Minnesota – Low-Cost, Low-Risk Digital Operations
Grand Forks presents a compelling market for workloads that require low operational costs and high physical security. Its combination of affordable power, significant tax incentives, and a very low natural disaster risk profile makes it a strategic choice for secondary disaster recovery sites, backup, and archival operations. This market is ideal for organizations prioritizing budget efficiency and infrastructure resilience over ultra-low latency connectivity to major hubs.
Grand Forks, Minnesota: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but limited long-haul fiber routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Minneapolis. Private extensions are available. |
| Power Cost | $0.08/kWh – as of 2021 | Competitive industrial power rates support cost-effective operations at scale. |
| Disaster Risk | Low (Score: 24.66) – as of September 2025 | Very low exposure to major catastrophic events like earthquakes or hurricanes. |
| Tax Incentives | Yes | State sales tax exemptions are available for qualifying data center equipment. |
| Sales Tax | 6.875% – as of September 2025 | Standard state sales tax applies; specific DC exemptions require application. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market provides access to a handful of regional and national carriers, as of September 2025. While not a dense hub, carrier-neutral facilities ensure competitive connectivity options are available for local and regional needs.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Grand Forks, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the nearest primary hub in Minneapolis, accessible through private network interconnects or wavelength services.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most network peering is handled privately or routed through major IXPs in larger hubs like Minneapolis or Chicago.
Bare Metal: Bare metal server options are available, primarily through providers that can deploy hardware into regional data centers. Solutions from providers like Hivelocity or ColoCrossing can serve deployments in this market.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the region average $0.08/kWh, as of 2021. This competitive pricing structure provides a significant operational cost advantage, particularly for high-density deployments or large-scale storage environments.
Power Grid Reliability: The local power grid is well-maintained and reliable, suitable for supporting critical data center operations. Infrastructure is built to withstand regional weather events, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in the Grand Forks area primarily serve local government, university research, agriculture technology (AgriTech), and unmanned aerial systems (UAS) industries. Proximity enables low-latency support for these critical regional sectors.
Regional Market Reach: The market effectively serves northern Minnesota, North Dakota, and parts of the Canadian province of Manitoba. It provides a strategic digital infrastructure point for a broad agricultural and logistical region.
Tax Advantage For Data Centers: Minnesota offers a significant financial benefit through a state sales tax exemption on data center equipment, software, and electricity for qualifying facilities. This incentive directly reduces the capital and operational expenses associated with building and running a data center.
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 location is insulated from major seismic, hurricane, and wildfire events that affect other US data center markets.
The primary environmental risks to consider are seasonal and include:
- Winter Weather
- Tornado
- Drought
- Strong Wind
- Riverine Flooding
