Data Centers in Lincoln
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Lincoln – A Low-Risk Hub for US Colocation
Lincoln, Nebraska offers a compelling environment for companies prioritizing operational stability, low disaster risk, and cost control. This market is ideal for disaster recovery sites, secondary deployments, and applications that require a reliable, central US presence to serve the Midwest and Great Plains regions. Its attractive tax incentives and stable power grid make it a strategic choice for managing long-term infrastructure costs.
Lincoln: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid secondary market with good regional and national network access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Omaha or Kansas City; private network extensions are available. |
| Power Cost | $0.07 - $0.09/kWh | Industrial rates are competitive, supported by a diverse and reliable energy portfolio. |
| Disaster Risk | Moderate (68.92 Score) | Relatively low national risk profile, with manageable and well-understood weather hazards. |
| Tax Incentives | Yes | Includes a significant sales tax exemption specifically for data center equipment purchases. |
| Sales Tax | 5.50% (Nebraska) | State sales tax rate as of mid-2025. |
Network & Connectivity Ecosystem
Lincoln provides a stable, though not densely populated, connectivity ecosystem. It is well-suited for applications that do not require sub-millisecond latency to the largest global exchanges but benefit from a central geographic location.
- Carrier Density & Carrier Neutrality: The market includes 3 providers, offering access to major national backbones as of September 2025. The facilities provide carrier-neutral interconnection, allowing flexibility in network design.
- Direct Cloud On-Ramps: There are no public cloud on-ramps within Lincoln as of September 2025. Businesses connect to cloud providers via private network links or dedicated waves to major hubs like Kansas City or Omaha.
- Internet Exchange Points (IXPs): Public peering is limited within Lincoln. Most peering occurs privately between carriers or is routed through major exchange points in nearby metropolitan areas.
- Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive workloads. Providers like ColoCrossing offer services in the region.
Power Analysis
Nebraska's power infrastructure is a key advantage, offering both competitive pricing and high reliability.
- Average Cost Of Power: Expect industrial power rates between $0.07 and $0.09 per kWh as of September 2025. This cost predictability is a significant benefit for managing long-term operational expenditures.
- Power Grid Reliability: The state's power grid is well-engineered, benefiting from a diverse generation mix that includes coal, nuclear, and a growing base of renewables. Data center corridors are typically supported by redundant infrastructure to ensure high uptime.
Market Access, Business & Tax Climate
Lincoln combines a business-friendly environment with strategic access to the central United States.
- Proximity To Key Business Districts: Data centers in Lincoln serve the state capital's government and technology sectors, the University of Nebraska, and the broader commercial ecosystem that extends to nearby Omaha.
- Regional Market Reach: From Lincoln, organizations can effectively serve end-users across the Great Plains and Midwest, reaching from the Dakotas down to North Texas with good latency.
- Tax Advantage For Data Centers: Nebraska offers a valuable sales tax exemption on computer systems, software, and equipment used in a data center. This incentive directly reduces the significant capital investment required for new builds or large-scale hardware refreshes.
Natural Disaster Risk
Lincoln has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 68.92 as of September 2025. The location avoids the primary threats of earthquakes and hurricanes that affect coastal markets.
Key risks are primarily weather-related and include tornadoes, strong wind, ice storms, and winter weather. These are well-understood regional hazards that modern data centers are engineered to withstand. Other notable risks for the area include drought and riverine flooding.
