Data Centers in Rochester

Rochester – Low-Risk, High-Value Infrastructure

Executive Summary

Rochester, Minnesota is a strategic market for organizations prioritizing operational stability and cost efficiency over hyper-dense connectivity. Its exceptionally low natural disaster risk makes it an ideal location for secondary disaster recovery sites and primary workloads for risk-averse industries. The combination of strong tax incentives and competitive power rates ensures a predictable total cost of ownership for critical infrastructure.

Rochester: At A Glance

Network & Connectivity Ecosystem

Rochester provides reliable network infrastructure, though it is not a primary interconnection hub like Chicago or Minneapolis. The ecosystem is well-suited for enterprise workloads and disaster recovery.

Carrier Density & Carrier Neutrality The market has a focused carrier presence, with at least one major provider operating in the area as of September 2025. For diverse multi-carrier environments, connectivity is often extended from nearby Minneapolis.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Rochester as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through private network connections to the nearest major hubs, primarily Chicago.

Internet Exchange Points (IXPs) Public peering is not a feature of the Rochester market. Most traffic exchange is handled privately or routed through the MICE internet exchange in Minneapolis to achieve low-latency connections across the Upper Midwest.

Bare Metal Bare metal server options are available within Rochester colocation facilities. Providers like ColoCrossing offer dedicated server solutions that give tenants direct access to compute resources without the overhead of virtualization.

Power Analysis

Rochester offers a favorable power environment, combining competitive costs with a stable grid, making it attractive for long-term infrastructure investments.

Average Cost Of Power Industrial power costs average around $0.08/kWh as of 2021. This rate is competitive for the region and provides significant operational savings compared to more expensive coastal markets.

Power Grid Reliability The power grid serving Rochester is well-engineered and reliable. Data centers in the area are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

The business and tax climate in Rochester is highly supportive of data center development, driven by state-level incentives and a strong local technology sector.

Proximity To Key Business Districts Data centers in Rochester are positioned to serve the area's world-renowned healthcare and biotechnology sector, led by the Mayo Clinic. This provides low-latency infrastructure for medical research, data processing, and healthcare IT services.

Regional Market Reach From Rochester, businesses can effectively serve the Upper Midwest, including Minnesota, Iowa, and Wisconsin. Its central location offers a stable and secure hub for regional application delivery and data storage.

Tax Advantage For Data Centers Minnesota provides significant financial incentives for data center operators and tenants. The state's sales tax exemption on IT equipment, software, and electricity directly reduces the capital and operational expenses associated with building and running a data center.

Natural Disaster Risk

Rochester 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 physical security is a primary driver for companies placing backup and recovery infrastructure in the region.

The main environmental risks are primarily weather-related and include:

• Tornado
• Winter Weather & Ice Storms
• Strong Wind
• Hail
• Cold and Heat Waves