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Data Centers in St. Louis

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St. Louis – Central US Hub for Low-Latency Delivery

St. Louis provides a compelling Tier 2 data center market, ideal for enterprises requiring low-latency infrastructure in the geographic center of the United States. Its strategic location, favorable tax incentives, and balanced risk profile make it a strong base for disaster recovery, content delivery, and reaching both East and West Coast markets effectively.

St. Louis: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong fiber infrastructure and carrier diversity for a central US market.
Direct Cloud On-Ramps0 – as of September 2025Direct cloud access requires extension to nearby hubs like Chicago.
Power Cost$0.08 - $0.10/kWh (est.)Competitive industrial power rates compared to other national markets.
Disaster RiskHigh (95.35) – as of September 2025Risk is primarily driven by specific, known geological and atmospheric hazards.
Tax IncentivesYesState programs offer sales tax exemptions on qualifying data center equipment.
Sales Tax4.225% (state base) – as of September 2025Local taxes may apply; state-level incentives can offset this cost.

Network & Connectivity Ecosystem

St. Louis is a significant network convergence point, benefiting from its central geography and history as a major commercial hub.

Carrier Density & Carrier Neutrality: The market is served by over 15 providers, including national and regional carriers, offering solid connectivity options within carrier-neutral facilities, as of September 2025.

Direct Cloud On-Ramps: St. Louis has 0 native public cloud on-ramps, meaning direct, private access to major cloud providers is not locally available as of September 2025. Businesses require private network extensions or wavelength services to connect to cloud regions in primary hubs like Chicago.

Internet Exchange Points (IXPs): Public peering is limited in St. Louis. Most traffic exchange occurs through private network interconnects (PNIs) within colocation facilities or is routed through major exchange points in Chicago.

Bare Metal: Bare metal server options are available from several providers in the area. Providers like ColoCrossing offer dedicated server solutions for workloads requiring direct hardware access.

Power Analysis

Average Cost Of Power: Industrial electricity rates are estimated to be between $0.08 and $0.10 per kWh, as of September 2025. These competitive power costs can significantly reduce operational expenses for high-density deployments.

Power Grid Reliability: The power grid supporting St. Louis's primary data center locations is well-engineered. The energy mix is dominated by coal (59%) and natural gas (21%), ensuring consistent baseload power, supplemented by nuclear and renewable sources.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the St. Louis area provide low-latency connectivity to the downtown central business district and surrounding corporate headquarters. This supports local finance, healthcare, and logistics industries.

Regional Market Reach: From its central position, St. Louis can effectively serve a large portion of the Midwest and Southern United States. It is a strategic location for reaching tens of millions of consumers with sub-20 millisecond latency.

Tax Advantage For Data Centers: Missouri offers a valuable Data Center Sales Tax Exemption Program. This incentive eliminates the state sales tax on equipment, software, and energy used in qualifying data center facilities, directly lowering capital and operational costs.

Natural Disaster Risk

St. Louis has a High natural disaster risk profile, with a FEMA National Risk Index score of 95.35, as of September 2025. This score is not a measure of certainty but reflects a higher-than-average exposure to specific, significant hazards.

Key risks for infrastructure planning include tornados, earthquakes (due to proximity to the New Madrid Seismic Zone), river flooding, severe wind, and hail. While hurricane risk is listed, it is an indirect threat from the remnants of Gulf Coast storms causing heavy rainfall and wind.

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