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Data Centers in Lincoln

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Lincoln – Cost-Effective & Resilient US Central Hub

Executive Summary

Lincoln, Nebraska is a strong choice for companies prioritizing operational resilience and cost efficiency. Its central US location, low disaster risk profile, and attractive power costs make it an ideal market for disaster recovery sites and secondary application deployments. This market delivers reliable infrastructure without the premium costs of primary coastal hubs.

Lincoln: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity, suited for Midwest operations and disaster recovery.
Direct Cloud On-Ramps0 – as of September 2025Nearest hubs are in Kansas City; private network extensions are available.
Power Cost$0.07 – $0.08/kWh, as of September 2025Very competitive rates driven by a diverse and locally-controlled energy portfolio.
Disaster RiskModerate (Score: 68.91), as of September 2025Low exposure to major seismic or hurricane events common in other regions.
Tax IncentivesYesIncludes a sales tax exemption specifically for data center equipment purchases.
Sales Tax5.50% (Nebraska State), as of September 2025Local taxes may apply; the state rate is competitive nationally.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality

Lincoln has a developing connectivity ecosystem with 3 providers present in local data centers, as of September 2025. While not as dense as major hubs, this provides sufficient options for redundancy and access to national backbones for most business needs.

Direct Cloud On-Ramps

There are no direct public cloud on-ramps within Lincoln data centers, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions or dedicated circuits to the nearest primary interconnection hub in Kansas City.

Internet Exchange Points (IXPs)

Public peering is limited within Lincoln. Most network peering is conducted privately between carriers or established via the major exchange points in Kansas City and Omaha, ensuring efficient traffic exchange throughout the central United States.

Bare Metal

Bare metal server options are available in the region, providing dedicated, high-performance computing without the overhead of virtualization. Providers like ColoCrossing offer solutions suitable for workloads requiring direct hardware access.

Power Analysis

Average Cost Of Power

Industrial power costs in Lincoln are highly competitive, ranging from approximately $0.07 to $0.08 per kWh, as of September 2025. This significant cost advantage, driven by a balanced energy mix of coal, nuclear, and renewables, directly reduces a primary operational expense for any compute-intensive deployment.

Power Grid Reliability

Nebraska's power grid is well-engineered and benefits from a diverse generation portfolio that includes significant wind, nuclear, and coal resources. Data centers in the Lincoln market are served by infrastructure designed for high uptime, supporting the needs of mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts

Data centers in Lincoln support the state capital's government agencies, the University of Nebraska's research initiatives, and a growing technology and insurance sector. The location provides low-latency connectivity for local and regional business operations.

Regional Market Reach

Positioned in the central US, Lincoln is an effective hub for serving end-users across the Great Plains and Midwest. It provides a strategic geographic advantage for disaster recovery plans, placing critical infrastructure far from primary coastal markets.

Tax Advantage For Data Centers

Nebraska offers compelling financial incentives that directly benefit data center operators and tenants. A key advantage is the sales tax exemption on computer systems, software, and the power used by the facility, which significantly lowers both initial capital investment and ongoing operational costs.

Natural Disaster Risk

Lincoln has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 68.91, as of September 2025. The score reflects a very low risk for events like earthquakes and hurricanes that affect other US data center markets.

Primary risks are climatological and include tornadoes, strong wind, hail, ice storms, and drought. Data center facilities in the region are purpose-built to mitigate these specific threats, incorporating hardened structures and resilient infrastructure designs.

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