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Data Centers in Wisconsin

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Wisconsin – Stable & Cost-Effective Midwest Hub

Wisconsin offers a compelling data center market for organizations prioritizing operational stability, low disaster risk, and significant cost savings. The state's attractive tax incentives and reliable infrastructure make it an excellent choice for secondary disaster recovery sites and production workloads that serve the Upper Midwest.

Wisconsin: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong regional connectivity; lacks a major Tier 1 network and peering hub.
Direct Cloud On-Ramps0 – as of September 2025Direct cloud access is available via network extension from nearby Chicago.
Power Cost$0.08 - $0.10/kWhIndustrial power costs are competitive for the US Midwest region.
Disaster RiskModerate (60.48) – as of September 2025Low exposure to major catastrophic events like earthquakes or hurricanes.
Tax IncentivesYesWisconsin offers a sales and use tax exemption for qualified data centers.
Sales Tax5.00% (State Base Rate) – as of September 2025Local taxes can increase the total rate.

Network & Connectivity Ecosystem

With 18 data centers, Wisconsin provides a solid foundation for colocation and interconnection in the Upper Midwest.

Carrier Density & Carrier Neutrality: The state is served by over 12 network carriers, as of September 2025. This provides sufficient options for redundancy and competitive pricing within carrier-neutral facilities.

Direct Cloud On-Ramps: Wisconsin has 0 native cloud on-ramps, as of September 2025. Businesses connect to hyperscale clouds like AWS, Google Cloud, and Microsoft Azure via dedicated network extensions to the primary hub in Chicago.

Internet Exchange Points (IXPs): Public peering is limited within the state. Most network peering is conducted privately between carriers or routed through major exchange points in Chicago and Minneapolis.

Bare Metal: Bare metal server capacity is readily available from multiple providers. Options from providers like Hivelocity and phoenixNAP can be deployed to serve workloads across the region.

Power Analysis

Average Cost Of Power: Industrial electricity rates typically range from $0.08 to $0.10/kWh, as of September 2025. These competitive power costs can significantly lower total operational expenses compared to coastal markets.

Power Grid Reliability: The power grid supporting Wisconsin's main commercial centers is well-engineered and stable. Data centers in the region leverage redundant power feeds from separate substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Wisconsin are strategically located to serve the state's primary economic hubs, including Milwaukee, Madison, and the Fox Valley. This supports key local industries such as manufacturing, healthcare, insurance, and biotechnology.

Regional Market Reach: The state is well-positioned to provide low-latency connectivity to the broader Upper Midwest, including major metropolitan areas like Chicago and Minneapolis-St. Paul.

Tax Advantage For Data Centers: Wisconsin provides a sales and use tax exemption on computer and server equipment for qualifying data center projects. This incentive directly reduces the capital investment required to build or expand a facility, making the state a financially attractive option.

Natural Disaster Risk

Wisconsin has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 60.48, as of September 2025. The state is not exposed to seismic, hurricane, or significant coastal flooding events. Primary risks are weather-related and can be mitigated with standard facility engineering and operational planning.

Key environmental risks include:

  • Tornado
  • Winter Weather & Ice Storms
  • Riverine Flooding
  • Strong Wind
  • Hail
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