Data Centers in St. Cloud
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St. Cloud – Cost-Effective Midwest Colocation
St. Cloud offers a compelling alternative to the primary Minneapolis-St. Paul data center market, providing significant cost advantages and a very low-risk environment. For businesses prioritizing operational stability and attractive total cost of ownership for workloads serving the Upper Midwest, this market delivers reliable infrastructure without the premium price tag.
St. Cloud: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though not a primary international or national peering hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via the Minneapolis-St. Paul metro through private network extensions. |
| Power Cost | $0.08/kWh – as of 2021 | Very competitive industrial power rates contribute to lower operational expenses. |
| Disaster Risk | Low (24.66 NRI Score) – as of September 2025 | One of the lowest-risk profiles in the nation for natural disasters. |
| Tax Incentives | Yes | State sales tax exemptions are available for qualified data center equipment and software. |
| Sales Tax | 6.875% – as of Midyear 2025 | Minnesota state sales tax rate. |
Network & Connectivity Ecosystem
St. Cloud provides reliable connectivity suitable for enterprise and secondary disaster recovery sites, with access to the richer ecosystem in nearby Minneapolis.
Carrier Density & Carrier Neutrality: The market has a focused carrier presence, with at least 2 providers in the primary data center, as of September 2025. Access to a broader ecosystem of regional and national carriers is available via Minneapolis.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within St. Cloud, as of September 2025. Secure, private connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are established through network extensions to Minneapolis.
Internet Exchange Points (IXPs): Peering is primarily conducted privately or through the MICE internet exchange in Minneapolis. This provides efficient traffic exchange for reaching regional end-users.
Bare Metal: Bare metal server availability is good, with providers like phoenixNAP and ColoCrossing offering services accessible from the region.
Power Analysis
St. Cloud stands out for its cost-effective and stable power infrastructure, making it a strong candidate for power-dense deployments.
Average Cost Of Power: The industrial electricity rate is approximately $0.08/kWh, as of 2021. This price is highly competitive nationally and offers a clear financial advantage over many other US markets.
Power Grid Reliability: The regional power grid is well-engineered, with infrastructure designed to handle Minnesota's seasonal weather extremes. Local data centers are supported by redundant systems to ensure high levels of uptime.
Market Access, Business & Tax Climate
The region's business climate is supported by strong state-level incentives and strategic proximity to the Twin Cities metropolitan area.
Proximity To Key Business Districts: St. Cloud serves as a secondary IT hub for the greater Minneapolis-St. Paul metropolitan area. It provides an ideal location for disaster recovery and backup operations for businesses headquartered in the Twin Cities.
Regional Market Reach: From St. Cloud, digital services can effectively reach populations across Minnesota, Wisconsin, Iowa, and the Dakotas with low latency.
Tax Advantage For Data Centers: Minnesota offers a significant sales tax exemption on data center equipment, software, and electricity for qualifying facilities. This incentive directly reduces both the initial capital investment and ongoing operational costs for tenants.
Natural Disaster Risk
St. Cloud 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 area is not prone to catastrophic events like earthquakes or hurricanes, making it a secure location for critical infrastructure. The primary environmental risks are manageable, weather-related events.
Key hazards include:
- Tornado
- Hail
- Strong Wind
- Winter Weather
- Drought
- Heat & Cold Waves
