Data Centers in Fargo
2 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Fargo, North Dakota, USA – Cost-Optimized Digital Infrastructure
Fargo offers a compelling economic advantage for workloads sensitive to operational costs. The combination of extremely low power prices and significant data center-specific tax exemptions makes it a prime market for companies looking to maximize their return on infrastructure investment. This market is ideal for high-performance computing, data archiving, and disaster recovery sites where minimizing long-term expenses is a primary goal.
Fargo, North Dakota, USA: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, though not a primary national network hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via private network extension to major hubs like Minneapolis. |
| Power Cost | $0.08/kWh – as of May 2025 | Among the lowest industrial power rates in the United States. |
| Disaster Risk | Moderate (71.78/100) – as of September 2025 | Main risks are weather-related; lacks seismic and hurricane exposure. |
| Tax Incentives | Yes | State provides sales and use tax exemptions for qualified DC equipment. |
| Sales Tax | 5.00% – as of September 2025 | This is the base state sales tax rate for North Dakota. |
Network & Connectivity Ecosystem
Fargo is a regional connectivity hub with a focused but capable network ecosystem. While it does not compete with major coastal markets on carrier density, it provides reliable infrastructure for businesses operating in the Upper Midwest.
Carrier Density & Carrier Neutrality The market has a focused carrier presence, with at least 1 provider operating in 2 data centers as of September 2025. Carrier-neutral facilities provide access to regional and national networks sufficient for most enterprise and content delivery needs.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Fargo as of September 2025. Businesses connect to hyperscale clouds by establishing private network links to carrier hotels and cloud exchanges in the nearest major hub, Minneapolis.
Internet Exchange Points (IXPs) Fargo does not host a public internet exchange point. Most network peering is handled privately between carriers or routed through larger exchanges in Minneapolis and Chicago.
Bare Metal Bare metal server capacity is available in the Fargo market. Providers like ColoCrossing offer dedicated server solutions suitable for workloads requiring direct hardware access and consistent performance.
Power Analysis
Fargo stands out for its exceptionally low-cost and reliable power, making it a strategic location for energy-intensive computing.
Average Cost Of Power The industrial electricity rate is approximately $0.08/kWh as of May 2025. This highly competitive rate directly reduces operational expenditures for data center customers, offering a significant cost advantage over most U.S. markets. The grid's energy mix includes substantial contributions from coal (55%) and wind (36%).
Power Grid Reliability The regional power grid is well-engineered and reliable. Data centers are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Fargo provides a stable business environment with strategic financial incentives and access to a key regional economic zone.
Proximity To Key Business Districts Local data centers serve Fargo's growing technology sector, including software development and agricultural technology (AgriTech), as well as academic research at North Dakota State University. Proximity ensures low-latency performance for local and regional enterprises.
Regional Market Reach From Fargo, businesses can effectively serve end-users across North Dakota, South Dakota, Minnesota, and parts of southern Canada. Its location is strategic for organizations targeting the north-central United States.
Tax Advantage For Data Centers North Dakota offers a valuable sales and use tax exemption for qualified data center projects. This incentive covers computer equipment, software, and construction materials, significantly lowering the initial capital investment required to build or scale a facility.
Natural Disaster Risk
Fargo has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 71.78 out of 100 as of September 2025. The location is free from seismic and hurricane risks, with primary threats stemming from severe weather common to the Great Plains. Key risks include tornadoes, strong wind, winter weather, cold waves, and drought.
