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Omaha – Reliable Infrastructure in the American Heartland

Omaha serves as a critical junction for enterprises needing a central United States footprint. This market provides a secure environment for long-haul network paths and large-scale compute deployments where uptime and operational efficiency drive the bottom line. It is a vital interconnection point for the finance and insurance sectors.

Omaha: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid central hub for cross-country fiber paths.
Direct Cloud On-RampsOver 1 – as of September 2025Local access to Google Cloud (GCP).
Power Cost$0.08/kWh, as of September 2025Competitive industrial rates from a diverse energy mix.
Disaster RiskModerate (68.9), as of September 2025Managed risk with specific seasonal weather considerations.
Tax IncentivesYesSales tax exemption for data center equipment.
Sales TaxNebraska sales tax 5.50%, as of September 2025Standard state rate applied to non-exempt purchases.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 20. As of September 2025, the market features approximately 20–25 providers, ranging from local fiber specialists to national tier-1 carriers. Facilities such as 1623 Farnam act as primary carrier hotels, ensuring competitive pricing and diverse pathing for enterprise requirements.

Direct Cloud On-Ramps: Over 1, enabling access to 1 cloud regions. As of September 2025, local users benefit from direct access to Google Cloud (GCP). For other major providers, low-latency private extensions connect Omaha to primary cloud hubs in Chicago and Denver.

Internet Exchange Points (IXPs): Omaha features local peering options that facilitate low-latency traffic exchange within the region. Most large-scale peering occurs through private interconnects or by leveraging backhaul to major national exchanges in the Midwest.

Bare Metal: High-performance compute options are available through providers such as phoenixNAP and Hivelocity as of September 2025. These services allow businesses to deploy dedicated hardware without the overhead of managing a physical facility.

Power Analysis

Average Cost Of Power: Industrial electricity in the region is priced at approximately $0.08/kWh as of September 2025. These costs remain stable due to an energy mix composed of roughly 40% coal, 25% nuclear, 20% renewables, and 15% natural gas. Low power costs directly improve the fiscal efficiency of high-density deployments.

Power Grid Reliability: The local grid is well-engineered with redundant configurations. Major data center corridors benefit from multi-substation support, ensuring that industrial users maintain high uptime even during peak demand periods.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Omaha are strategically located near the city center and the growing Papillion technology corridor. This proximity supports the high-speed requirements of the finance, insurance, and healthcare sectors that drive the regional economy.

Regional Market Reach: Omaha acts as a central gateway, providing efficient service to the Nebraska–Iowa border region and the broader Midwest. Its location makes it a logical site for disaster recovery and content distribution between major coastal markets.

Tax Advantage For Data Centers: Nebraska offers a specific sales tax exemption for data center equipment, which significantly reduces the total cost of ownership for hardware. This incentive makes the region highly competitive for companies looking to maximize their infrastructure budget during hardware refreshes.

Natural Disaster Risk

Risk Rubric: Moderate (68.9/100), as of September 2025. Omaha is classified as having a moderate overall risk profile. While the region is inland and free from coastal threats, facility operators account for localized weather events to maintain continuous service.

  • Tornado: High frequency for the region requires purpose-built reinforced structures.
  • Hail: Regular seasonal occurrence necessitating resilient roofing and exterior protection.
  • Ice Storms: Potential for winter grid stress, managed through redundant power feeds.
  • River Flooding: Managed through site selection and elevated equipment placement.
  • Winter Weather: Requires proactive facility management and fuel storage for backup generators.

Other natural hazards, such as drought or lightning, are considered minor and are addressed through standard site engineering and maintenance protocols.

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