Data Centers in Toledo

Toledo – Cost-Effective Midwest Hub

Toledo provides a compelling, low-risk environment for companies seeking a secondary data center market or a disaster recovery site. Its strategic location in the Great Lakes region offers a cost-effective alternative to primary hubs like Chicago, delivering reliable infrastructure without the premium price tag. This makes it an excellent choice for workloads where operational stability and budget control are critical.

Toledo: At A Glance

Network & Connectivity Ecosystem

Toledo is a developing secondary market with a focused connectivity ecosystem. While it lacks the density of a primary hub, it provides reliable access for regional workloads and disaster recovery solutions.

• Carrier Density & Carrier Neutrality: The market features access to over 4 network providers as of September 2025. The three data centers in the area provide access to these carriers, supporting redundant network architectures.
• Direct Cloud On-Ramps: There are no direct, native cloud on-ramps located within Toledo. Secure, private connections to all major cloud providers are achieved through network extensions to primary interconnection hubs in Chicago and Detroit.
• Internet Exchange Points (IXPs): Public peering within Toledo is limited. Most peering is handled privately between carriers or routed through major exchange points in Chicago to ensure efficient traffic exchange.
• Bare Metal: Bare metal server options are available from national providers that service edge and secondary markets. Providers like ColoCrossing can deploy dedicated infrastructure in the region.

Power Analysis

Ohio's power infrastructure offers a blend of affordability and reliability, making it an attractive location for power-intensive deployments.

• Average Cost Of Power: Industrial electricity rates typically range from $0.07 to $0.09/kWh as of September 2025. This competitive pricing can significantly lower the total cost of ownership for data center operations compared to more expensive coastal markets.
• Power Grid Reliability: The regional grid is well-engineered, drawing from a diverse generation mix of natural gas, coal, and nuclear sources. Data center facilities in the area are supported by reliable utility service and can be configured with redundant power feeds from separate substations.

Market Access, Business & Tax Climate

Toledo's location and business-friendly environment provide distinct advantages for data center operators and their customers.

• Proximity To Key Business Districts: Data centers in Toledo serve the manufacturing, logistics, and healthcare industries of Northwest Ohio and Southeast Michigan. This proximity provides low-latency connectivity for local enterprise and industrial applications.
• Regional Market Reach: The market is well-positioned to serve the population corridor between Chicago and Cleveland. It acts as an effective disaster recovery location for businesses with a primary presence in either of those larger metropolitan areas.
• Tax Advantage For Data Centers: Ohio provides significant tax incentives for large-scale data center projects, often negotiated through the Ohio Tax Credit Authority. These programs can substantially reduce the long-term tax burden on equipment and infrastructure investments.

Natural Disaster Risk

Toledo has a very low natural disaster risk profile, making it a secure location for critical infrastructure. The region scores 19.50 on the FEMA National Risk Index, classifying it as a "Low" risk area as of September 2025. The primary environmental risks are manageable, seasonal weather events. Key risks include tornadoes, strong winds, winter weather, ice storms, and riverine flooding. The area has minimal exposure to seismic, hurricane, or wildfire events.