Data Centers in Mankato
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Mankato, Minnesota – Reliable Midwest Edge Computing
Mankato offers a cost-effective and resilient location for workloads serving southern Minnesota and the greater Upper Midwest. For businesses prioritizing operational stability and attractive tax incentives over direct cloud access, this market provides a solid foundation for edge deployments and disaster recovery sites. Its extremely low natural disaster risk profile ensures uptime for critical applications.
Mankato: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though lacking direct cloud access points found in primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major hub for on-ramps is Minneapolis; private connections are available. |
| Power Cost | $0.08/kWh – as of 2021 | Competitive industrial electricity rates contribute to lower total operating costs. |
| Disaster Risk | Low (24.66) – as of September 2025 | One of the lowest-risk profiles in the nation for natural disasters. |
| Tax Incentives | Yes | State-level sales tax exemptions are available for qualifying data center equipment and software. |
| Sales Tax | 6.875% – as of 2025 | Standard Minnesota state sales tax rate applies to non-exempt purchases. |
Network & Connectivity Ecosystem
Mankato is a secondary market with reliable connectivity options suitable for regional enterprise and edge computing needs.
Carrier Density & Carrier Neutrality: The market is served by at least two providers, as of September 2025. While not a major carrier hub, facilities offer access to regional and national networks for redundancy.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Mankato, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network extensions to the nearest primary hub in Minneapolis.
Internet Exchange Points (IXPs): Most peering occurs privately or through provider blends. For public peering, traffic is routed through the MICE internet exchange in Minneapolis, which improves regional network performance.
Bare Metal: Bare metal server options are available in the region, typically provisioned from providers in larger nearby markets like Minneapolis. Providers such as Hivelocity can serve deployments in the area.
Power Analysis
Mankato provides cost-effective and dependable power, a key advantage for compute-intensive operations.
Average Cost Of Power: Industrial electricity rates are approximately $0.08/kWh, as of 2021. This competitive pricing can significantly reduce ongoing operational expenses compared to larger, more expensive markets.
Power Grid Reliability: The regional power grid is well-engineered to handle Minnesota's climate extremes. Infrastructure supporting data centers in the area is designed for high reliability, with access to redundant power sources.
Market Access, Business & Tax Climate
Mankato's strategic location and favorable tax policies make it an attractive site for specific data center investments.
Proximity To Key Business Districts: The data center market serves businesses in southern Minnesota, including agriculture, manufacturing, and healthcare sectors. Its location provides low-latency access for local and regional operations.
Regional Market Reach: Mankato is positioned to effectively serve the southern half of Minnesota and northern Iowa. It functions as a valuable edge location for content delivery and application processing closer to end-users in these areas.
Tax Advantage For Data Centers: Minnesota offers a significant financial benefit through a state sales tax exemption on data center equipment, software, and electricity. This incentive lowers the upfront capital investment and reduces long-term operational costs for qualifying facilities.
Natural Disaster Risk
Mankato 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 low-risk environment minimizes the potential for weather-related service disruptions. Key hazards for the region are primarily severe weather events. The most prominent risks include hail, strong wind, tornadoes, and winter storms.
