Data Centers in Lincoln
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Lincoln – Resilient Infrastructure in the Silicon Prairie
Executive Summary
Lincoln serves as a strategic regional hub for enterprises requiring high uptime and operational stability within the American Midwest. Its central location and specific tax advantages make it a reliable choice for securing mission-critical workloads away from coastal volatility. Businesses leverage this market to balance performance with a cost-effective footprint.
Lincoln: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional backhaul with reliable path diversity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub city is Omaha. |
| Power Cost | $0.07 – $0.09/kWh, as of September 2025 | Competitive industrial rates with a diverse energy mix. |
| Disaster Risk | Moderate (68.91), as of September 2025 | Primary risks include localized weather events and wind. |
| Tax Incentives | Yes | Sales tax exemption for data center equipment. |
| Sales Tax | Nebraska sales tax 5.50%, as of September 2025 | State-level rate remains below many national peers. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5. As of September 2025, the market features a range of 5–10 carriers providing diverse fiber paths. This environment supports competitive pricing for local transit and backhaul requirements.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. As of September 2025, there are no direct on-ramps within the city limits. Most enterprises utilize private network extensions or high-capacity waves to reach cloud gateways in Omaha or Kansas City.
Internet Exchange Points (IXPs): Public peering options are limited locally, with most traffic exchanging via private interconnects or routed through larger regional hubs in Omaha.
Bare Metal: Bare metal services are available through regional providers and local data center operators, with national providers like Hivelocity often serving this geography via nearby nodes as of September 2025.
Power Analysis
Average Cost Of Power: Industrial electricity in this region typically ranges from $0.07 to $0.09/kWh, as of September 2025. These rates are supported by a diversified generation mix including nuclear, coal, and increasing renewable wind capacity, providing a cost advantage for power-intensive operations.
Power Grid Reliability: The local infrastructure is well-engineered with redundant configurations. Multi-substation support in key industrial corridors ensures consistent delivery for high-availability facilities.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are located near the downtown core and the University of Nebraska, providing low-latency access to government, education, and growing technology sectors.
Regional Market Reach: Lincoln effectively serves the broader Nebraska and Iowa corridor, acting as a resilient midpoint for traffic moving between Chicago and Denver.
Tax Advantage For Data Centers: Nebraska offers a specific sales tax exemption on data center equipment and hardware. This financial benefit significantly lowers the initial capital expenditure for hardware refreshes and large-scale deployments.
Natural Disaster Risk
The natural disaster risk for Lincoln is rated as Moderate (68.91), as of September 2025. While the overall score is relatively low compared to coastal regions, the following natural hazards are the most significant:
- Tornadoes: A primary concern for the region requiring reinforced physical structures.
- Hail and Ice Storms: Frequent occurrences that necessitate resilient exterior utility protection.
- Cold Waves and Winter Weather: Severe weather patterns that require winterized cooling and generator systems.
- Strong Wind and Lightning: Common atmospheric events that demand high-quality grounding and structural integrity.
- River Flooding: Risks are localized to specific low-lying areas, though most facilities are sited on higher ground.
As an inland metro, coastal flood and tsunami risks are not applicable to the local risk profile. All other environmental hazards are considered minor as of September 2025.
