Data Centers in Owatonna

Owatonna – Low-Risk, Cost-Effective Colocation

Owatonna provides a compelling location for disaster recovery and secondary compute workloads. For businesses focused on minimizing operational costs and avoiding natural disaster zones, this Minnesota market offers a stable, low-risk environment without the premium price of a major metropolitan hub.

Owatonna: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality The Owatonna market is served by at least 2 providers as of September 2025. This indicates a developing market where connectivity is concentrated with key regional carriers rather than a dense, multi-carrier ecosystem found in larger cities.

Direct Cloud On-Ramps There are no direct cloud on-ramps within Owatonna as of September 2025. Access to hyperscale cloud providers requires connecting through the nearest major hub, Minneapolis. Businesses typically establish this connectivity using private network interconnects or wavelength services from local carriers.

Internet Exchange Points (IXPs) Public peering is not available directly in Owatonna. Most network peering is handled privately or routed through the MICE internet exchange in Minneapolis to achieve efficient traffic exchange.

Bare Metal Dedicated bare metal server options are limited in Owatonna itself. Deployments are typically sourced from providers with a presence in the larger Minneapolis market, such as Hivelocity or ColoCrossing.

Power Analysis

Average Cost Of Power Industrial power rates in the region average around $0.08/kWh as of 2021. This competitive pricing offers a significant advantage for reducing the ongoing operational expense of high-density compute and storage environments.

Power Grid Reliability The local power grid is stable and well-maintained, supporting standard commercial and industrial operations. Data centers in the area are built with redundant power systems, including UPS and on-site generators, to ensure uptime for critical applications.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Located south of the Twin Cities along the I-35 corridor, Owatonna offers strategic access for businesses in southern Minnesota. It is an ideal location for disaster recovery sites for companies headquartered in the Minneapolis-St. Paul metropolitan area.

Regional Market Reach From Owatonna, organizations can effectively serve the Upper Midwest, including southern Minnesota and northern Iowa. The location provides a good geographic alternative to Minneapolis for latency-sensitive applications serving this specific region.

Tax Advantage For Data Centers Minnesota provides a substantial financial advantage through its sales tax exemption program for qualifying data centers. This incentive allows for a complete refund of sales tax on critical infrastructure like computer equipment, cooling systems, and software, directly reducing the capital investment required for a new build or major expansion.

Natural Disaster Risk

Owatonna has a very low natural disaster risk profile, with a FEMA National Risk Index score of 24.66 as of September 2025. The area is not prone to catastrophic events like earthquakes or hurricanes, making it a fundamentally safe location for critical infrastructure.

The primary environmental risks to consider are severe weather events, including:

• Tornado
• Winter Weather & Ice Storms
• Strong Wind
• Hail
• Cold Wave