Data Centers in Minneapolis-Saint Paul
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Minneapolis-Saint Paul – Strategic Interconnection for the Upper Midwest
Executive Summary
Minneapolis-Saint Paul serves as a vital infrastructure anchor for the Upper Midwest, offering a stable environment for mission-critical deployments. This market is a top choice for enterprises that need proximity to a dense corporate headquarters base and aggressive tax incentives to manage long-term costs. Deploying here ensures a balance of geographic safety and high-performance connectivity that protects revenue and uptime.
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | A | High-speed fiber routes connecting Chicago to the Pacific Northwest. |
| Direct Cloud On-Ramps | Over 2 – as of September 2025 | Local access to AWS supports low-latency hybrid cloud deployments. |
| Power Cost | $0.08/kWh – as of September 2025 | Competitive industrial rates provide a financial advantage for high-density operations. |
| Disaster Risk | Low (24.66) – as of September 2025 | One of the most geographically stable metros in North America. |
| Tax Incentives | Yes | Sales tax exemptions for hardware and software investments. |
| Sales Tax | 6.88% – as of September 2025 | Regional tax rates remain stable for corporate commerce. |
Network & Connectivity Ecosystem
The Twin Cities infrastructure has matured into a top-tier regional peering point. With 40 data centers and a dense concentration of fiber providers, the market acts as a bridge between the Great Lakes and the Pacific Northwest.
Carrier Density & Carrier Neutrality: Carrier count: over 95. As of September 2025, the market hosts ~100 carriers, providing significant competitive choice for transit and transport. This density ensures high levels of redundancy and competitive pricing for enterprise colocation.
Direct Cloud On-Ramps: Over 2, enabling access to 1 cloud regions. As of September 2025, the market provides direct on-ramps to AWS, allowing for private, low-latency connections that bypass the public internet.
Internet Exchange Points (IXPs): The Midwest Internet Cooperative Exchange (MICE) is the dominant local IXP, facilitating high-speed local peering that keeps traffic local and reduces latency to Chicago.
Bare Metal: High-performance bare metal services are widely available through providers such as Hivelocity and Latitude.sh, supporting rapid scaling without the overhead of virtualization.
Power Analysis
Energy availability in the Minneapolis-Saint Paul metro is characterized by stability and a diverse generation mix, making it a reliable destination for high-density computing.
Average Cost Of Power: $0.08/kWh, as of September 2025. These industrial rates are highly competitive compared to coastal markets, providing a direct boost to the bottom line for power-hungry AI and high-performance computing clusters.
Power Grid Reliability: The local grid is supported by a well-engineered network with multi-substation support in major data center corridors. This redundancy ensures that large-scale facilities maintain continuous operations even during extreme weather events.
Market Access, Business & Tax Climate
The Twin Cities market is built for business, providing proximity to a massive corporate base and a regulatory environment that favors data center operators.
Proximity To Key Business Districts: Data centers are strategically located near the Minneapolis North Loop and the suburban corporate corridors of Bloomington and Eagan. This proximity is vital for the financial, healthcare, and retail sectors that require immediate physical access to their hardware.
Regional Market Reach: This location serves as the primary digital gateway for Minnesota, the Dakotas, and western Wisconsin, reaching millions of users with sub-10ms latency.
Tax Advantage For Data Centers: Minnesota provides a powerful sales tax refund for data center investments that meet specific size and spending requirements. This benefit drastically reduces the cost of server refreshes and infrastructure upgrades, making it one of the most cost-effective states for long-term deployments.
Natural Disaster Risk
The Twin Cities region is one of the most resilient metros in the country. With a FEMA NRI Score of 24.66 (Low), as of September 2025, the risk to physical infrastructure is minimal compared to coastal or seismic zones.
Primary Natural Hazards: The highest-rated natural risks include Cold Waves, Ice Storms, Hail, Strong Winds, and Tornadoes. While cold-related risks are common, modern data centers are specifically built to handle heavy snow loads and sub-zero temperatures.
Risk Mitigation: Other risks, such as Wildfire and Landslides, are minor or not listed as significant threats to the metro area. The inland location removes any material risk from coastal flooding or tsunamis, ensuring long-term site viability.
