Data Centers in Lincoln
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Lincoln, Nebraska, USA – Stable & Central US Colocation
Lincoln, Nebraska, offers a compelling market for companies needing a stable, centrally located data center presence. Its low disaster risk profile and attractive tax incentives make it an ideal choice for secondary disaster recovery sites and primary workloads that serve a broad national audience without requiring coastal proximity.
Lincoln, Nebraska, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; not a primary international hub. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest hubs are Kansas City and Omaha; private connectivity is available. |
| Power Cost | $0.08 - $0.10/kWh | Sourced from a diverse mix of coal, nuclear, and renewables. |
| Disaster Risk | Moderate (68.92) — as of September 2025 | Very low risk for seismic and hurricane events; primary risks are atmospheric. |
| Tax Incentives | Yes | Includes a sales tax exemption for data center equipment. |
| Sales Tax | 5.50% (Nebraska) — as of Midyear 2025 | State-level sales tax, with potential local additions. |
Network & Connectivity Ecosystem
Lincoln provides reliable connectivity suitable for a wide range of applications, leveraging its position in the central United States. While not a top-tier interconnection hub, the ecosystem is more than sufficient for regional and national workloads.
Carrier Density & Carrier Neutrality: Lincoln is served by over 3 data center operators across 3 facilities, as of September 2025. This environment offers adequate choice for network redundancy and competitive pricing.
Direct Cloud On-Ramps: There are no direct, dedicated cloud on-ramps within Lincoln data centers, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the nearest network hubs in Kansas City or Omaha through private network interconnects and wavelength services.
Internet Exchange Points (IXPs): Public peering is not a major feature of the Lincoln market. Interconnection is primarily handled through private peering arrangements within carrier-neutral facilities or by routing traffic to larger exchange points in nearby metropolitan areas.
Bare Metal: Bare metal server options are available in the region, providing on-demand compute for latency-sensitive applications. Providers like ColoCrossing offer dedicated server solutions accessible from Lincoln.
Power Analysis
Nebraska's power infrastructure is a key advantage for data center operators, offering stability and a favorable cost structure.
Average Cost Of Power: Industrial electricity rates typically range from $0.08 to $0.10 per kWh, as of September 2025. This competitive pricing, combined with a diverse energy mix including coal, nuclear, and renewables, helps lower total operational costs.
Power Grid Reliability: The regional power grid is well-engineered and reliable. Data centers in the area are supported by resilient infrastructure capable of meeting uptime requirements for enterprise and disaster recovery operations.
Market Access, Business & Tax Climate
Lincoln offers a business-friendly environment with strategic access to key regional markets.
Proximity To Key Business Districts: Data centers in Lincoln serve the city's government, education, and growing technology sectors. Proximity allows for low-latency connections essential for local enterprise operations.
Regional Market Reach: From Lincoln, businesses can effectively serve end-users across the Midwest and the broader central United States. Its location provides a good balance for national content delivery and application performance.
Tax Advantage For Data Centers: Nebraska provides a significant sales tax exemption on computer systems, software, and equipment purchased for a data center. This incentive directly reduces the capital expenditure required to build out or refresh IT infrastructure.
Natural Disaster Risk
Lincoln has a moderate natural disaster risk profile, making it a secure location for critical infrastructure.
The FEMA National Risk Index for the Lincoln area is 68.92, a moderate score, as of September 2025. The primary risks are atmospheric and include severe wind, tornado, hail, lightning, and riverine flooding. The region has a very low risk of earthquake or hurricane-related events, reinforcing its stability as a data center location.
