Data Centers in Nebraska

Nebraska – Central, Stable & Cost-Effective

Nebraska offers a compelling combination of low operational costs, a central US location, and a low-risk natural disaster profile. This market is ideal for enterprises needing a disaster recovery site or a primary footprint to serve the American Midwest with excellent latency. For businesses where uptime and predictable expenses are critical, Nebraska delivers a stable and cost-effective platform.

Nebraska: At A Glance

Network & Connectivity Ecosystem

Nebraska's connectivity is solid, anchored by a healthy mix of regional and national providers. While not a top-tier interconnection hub like Chicago, it provides more than enough capacity for enterprise and content delivery workloads.

Carrier Density & Carrier Neutrality: Nebraska is served by over 20 unique network providers, as of September 2025. The 14 colocation data centers in the state offer access to this carrier diversity, ensuring competitive pricing and resilient network design.

Direct Cloud On-Ramps: Direct cloud access is available in Nebraska, with one on-ramp enabling dedicated connections to one Google Cloud (GCP) region, as of September 2025. For other hyperscalers, private network extensions can be established to major hubs like Kansas City or Chicago.

Internet Exchange Points (IXPs): Public peering is limited within Nebraska itself. Most high-volume traffic exchange is handled through private network interconnects or routed via major regional peering points in nearby cities.

Bare Metal: Bare metal server options are available from providers in the region, including services from providers like ColoCrossing, offering dedicated compute for performance-sensitive applications.

Power Analysis

Nebraska's power infrastructure is a significant advantage, characterized by competitive pricing and a reliable grid.

Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09/kWh, as of September 2025. These affordable rates make large-scale deployments more economical and help manage long-term operational budgets effectively.

Power Grid Reliability: The state's power grid is well-engineered and benefits from a diverse energy mix that includes coal, nuclear, and a growing renewables portfolio of wind, hydro, and solar. This diversity contributes to grid stability and predictable supply, supporting mission-critical operations.

Market Access, Business & Tax Climate

Nebraska provides a business-friendly environment with strategic market access and valuable financial incentives for data center operators.

Proximity To Key Business Districts: Data centers are located to serve the primary business hubs of Omaha and Lincoln. These cities are home to major financial, insurance, logistics, and agricultural technology companies that require reliable, low-latency digital infrastructure.

Regional Market Reach: From its central location, Nebraska can effectively serve a vast portion of the United States with minimal latency. It is a strategic point for reaching customers from the Rocky Mountains to the Mississippi River, making it an excellent choice for content delivery networks and distributed applications.

Tax Advantage For Data Centers: The state offers a significant tax incentive specifically for data centers. Operators can benefit from a sales tax exemption on computer systems, software, and certain equipment purchases. This advantage directly reduces the capital expenditure required for building new facilities or upgrading existing ones.

Natural Disaster Risk

Nebraska has a moderate natural disaster risk profile, with a national risk score of 68.92, as of September 2025. The state is not exposed to hurricane or significant seismic threats.

The primary environmental risks are weather-related and include:

• Tornado
• Strong Wind
• Hail
• Winter Weather
• Ice Storm
• Riverine Flooding
• Drought