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Data Centers in Cleveland

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Cleveland, Ohio, USA – Low-Risk Hub for Midwest Connectivity

Cleveland provides a stable, low-risk environment for enterprises seeking a strategic data center presence in the American Midwest. Its location offers low-latency connectivity to major Great Lakes and East Coast markets without the high costs or disaster risks of primary coastal hubs. This makes Cleveland an ideal choice for disaster recovery, secondary compute sites, and edge deployments serving regional end-users.

Cleveland: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong fiber infrastructure and carrier availability support high-performance needs.
Direct Cloud On-Ramps0 – as of September 2025Access cloud providers via private network extensions to hubs like Chicago or Ashburn.
Power Cost$0.07 - $0.09/kWh (est.)Competitive industrial power rates help control operational expenditures for dense deployments.
Disaster RiskLow (19.50 FEMA NRI)Very low exposure to major natural disasters, enhancing infrastructure resilience.
Tax IncentivesYesOhio offers negotiated tax credits for qualifying data center projects.
Sales Tax5.75% (State) – as of September 2025Ohio's state-level sales tax rate applies to equipment purchases.

Network & Connectivity Ecosystem

Cleveland’s connectivity is built on a solid foundation of carrier diversity and strategic location, making it a reliable node for regional traffic exchange.

  • Carrier Density & Carrier Neutrality: The Cleveland market is served by over 15 network carriers as of September 2025, with 18 colocation data centers providing a range of neutral interconnection options.

  • Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Cleveland as of September 2025. Secure, high-speed access to AWS, Google Cloud, Microsoft Azure, and other major platforms is typically achieved via dedicated network circuits to nearby interconnection hubs like Chicago.

  • Internet Exchange Points (IXPs): The market benefits from local peering at the Ohio IX, which helps keep local traffic within the region for lower latency. Most large-scale peering is handled privately or through data centers in Chicago.

  • Bare Metal: Bare metal server solutions are readily available from providers in the Cleveland market. Options include services from national providers such as ColoCrossing.

Power Analysis

Cleveland offers reliable and competitively priced power, a crucial factor for managing the total cost of ownership for data center operations.

  • Average Cost Of Power: Industrial electricity rates are estimated to be between $0.07 and $0.09 per kWh as of September 2025. This competitive pricing structure provides a significant operational cost advantage compared to more expensive coastal markets. The state's power mix is primarily generated from natural gas (59%), coal (19%), and nuclear (12%) as of 2023.

  • Power Grid Reliability: The regional power grid is well-engineered, with data centers typically supported by redundant feeds from multiple substations. This design ensures high levels of uptime for mission-critical infrastructure.

Market Access, Business & Tax Climate

Cleveland's strategic location, combined with a favorable business environment, makes it an attractive market for data center investment.

  • Proximity To Key Business Districts: Data centers in the area provide low-latency connectivity to downtown Cleveland's financial and legal sectors, the Health-Tech Corridor, and numerous manufacturing and logistics firms throughout Northeast Ohio.

  • Regional Market Reach: Cleveland is an excellent hub for serving end-users across Ohio and the Great Lakes region. It offers effective reach to millions of consumers in nearby metro areas like Detroit, Pittsburgh, and Columbus.

  • Tax Advantage For Data Centers: Ohio provides significant tax incentives for large-scale data center projects, which are negotiated on a case-by-case basis. These credits can substantially reduce the capital investment required, improving the financial viability of new builds or major expansions.

Natural Disaster Risk

Cleveland has a very low natural disaster risk profile, making it a prime location for critical infrastructure requiring maximum uptime and physical security.

The region's FEMA National Risk Index score is 19.50, classifying it as a "Low Risk" area as of September 2025. The primary environmental hazards to consider are seasonal weather events. Key risks include tornados, winter weather, strong wind, and riverine flooding. The area has minimal exposure to catastrophic events like earthquakes or hurricanes.

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