Data Centers in Nebraska

Nebraska – Central Hub for Resilient Infrastructure

Nebraska is a primary market for enterprises that require geographically central, low-risk infrastructure for disaster recovery and national application delivery. Its strategic location, combined with attractive power costs and tax incentives, offers a compelling alternative to coastal hubs for workloads where uptime and cost predictability are critical.

Nebraska: At A Glance

Network & Connectivity Ecosystem

Nebraska's connectivity is solid, benefiting from its history as a crossroads for national fiber routes. While not a top-tier interconnection hub, it provides reliable access for Midwest operations.

Carrier Density & Carrier Neutrality With over 20 carriers present as of September 2025, Nebraska offers sufficient choice for creating redundant network architectures in its 14 colocation facilities. Carrier-neutral data centers are the standard, preventing vendor lock-in.

Direct Cloud On-Ramps Nebraska has over 1 direct cloud on-ramp, enabling low-latency hybrid cloud access to 1 cloud region as of September 2025. This includes dedicated access to Google Cloud (GCP). For other clouds, private network extensions connect efficiently to major hubs like Kansas City and Chicago.

Internet Exchange Points (IXPs) Public peering is limited within the state. Most high-volume traffic exchange occurs via private peering within local data centers or is routed through major exchange points in nearby cities, primarily Chicago and Kansas City.

Bare Metal Bare metal server options are available from providers with a national footprint. This allows businesses to deploy dedicated compute without capital expenditure, with providers like ColoCrossing offering services in the region.

Power Analysis

Nebraska's power infrastructure is a significant advantage, characterized by affordability, reliability, and an increasingly diverse generation mix.

Average Cost Of Power Industrial power rates typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing directly lowers the total cost of ownership for high-density compute and storage environments.

Power Grid Reliability The state's power grid is well-engineered and benefits from a balanced energy portfolio that includes significant nuclear, wind, and hydroelectric sources. This diversity enhances grid stability and provides predictable service to data center operators.

Market Access, Business & Tax Climate

Nebraska offers a business-friendly environment, particularly for capital-intensive industries like data centers.

Proximity To Key Business Districts Data centers in Nebraska are primarily located to serve the financial services, insurance, and logistics companies headquartered in Omaha, as well as the state government and technology sectors in Lincoln.

Regional Market Reach Its central US location makes Nebraska an excellent choice for disaster recovery sites for businesses on either coast. It can effectively serve the entire continental United States with relatively balanced latency.

Tax Advantage For Data Centers Nebraska provides a key sales tax exemption on computer systems, software, and equipment used in a data center. This incentive significantly reduces the upfront capital investment required for building out or refreshing large-scale infrastructure.

Natural Disaster Risk

Nebraska maintains a moderate disaster risk profile, avoiding the seismic and hurricane threats common in other major US markets.

As of September 2025, Nebraska has a FEMA National Risk Index score of 68.92, which is considered moderate. The primary environmental threats are atmospheric and seasonal. Key risks include tornados, hail, strong wind, winter weather, ice storms, and riverine flooding.