Data Centers in Madison

Madison – Resilient Midwest Colocation Hub

Madison offers a compelling alternative to larger Midwest markets like Chicago, providing a stable, lower-risk environment for production and disaster recovery workloads. With access to 8 facilities from 6 different providers, the market is ideal for enterprises serving Wisconsin and the Upper Midwest that require reliable infrastructure without the premium costs of a primary hub. Its strategic location delivers a balance of connectivity, favorable business conditions, and robust infrastructure.

Madison: At A Glance

Network & Connectivity Ecosystem

Madison's connectivity ecosystem is well-suited for regional enterprise needs, offering reliable access to national networks.

Carrier Density & Carrier Neutrality With 8 data centers operated by 6 providers, the Madison market provides a good selection of carrier-neutral facilities, as of September 2025. Businesses can connect with over 20 unique network carriers, ensuring competitive pricing and redundant connectivity options.

Direct Cloud On-Ramps There are no public cloud on-ramps located directly in Madison, as of September 2025. Secure, private connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are established through dedicated circuits to network hubs in Chicago.

Internet Exchange Points (IXPs) Public peering is limited within Madison. Most interconnection occurs through private network connections or via major Internet Exchanges in nearby Chicago, which provides low-latency access to hundreds of networks.

Bare Metal Bare metal server options are available in the Madison market. Providers like Hivelocity offer dedicated server solutions, enabling businesses to deploy high-performance computing without capital investment in hardware.

Power Analysis

Madison provides reliable and competitively priced power, making it an attractive location for infrastructure deployments.

Average Cost Of Power Industrial electricity rates in the Madison area typically range from $0.08 to $0.10 per kWh, as of September 2025. These stable and affordable power costs can significantly lower the total cost of ownership for data center operations.

Power Grid Reliability The power grid serving the Madison region is well-engineered and stable. Data centers in the area are supported by resilient infrastructure designed to provide consistent uptime for critical business applications.

Market Access, Business & Tax Climate

Madison's business environment offers excellent access to regional markets and significant financial incentives.

Proximity To Key Business Districts Data centers in Madison are strategically located to serve the state government, the University of Wisconsin, and the city's growing technology, healthcare, and biotech sectors. This proximity ensures low-latency performance for local and regional users.

Regional Market Reach From Madison, organizations can effectively serve the entire state of Wisconsin as well as markets in Minnesota, Iowa, and Illinois. It serves as an excellent disaster recovery site for deployments based in Chicago.

Tax Advantage For Data Centers Wisconsin provides a valuable sales and use tax exemption on equipment and software for qualifying data centers. This incentive directly reduces the capital expenditure required for new deployments and hardware refreshes, improving the financial case for locating in the state.

Natural Disaster Risk

Madison has a moderate natural disaster risk profile, making it a safer location than many other US metros. The FEMA National Risk Index score is 60.48 out of 100, as of September 2025. The primary environmental risks are atmospheric and weather-related rather than seismic or coastal.

Key risks include:

• Tornado
• Strong Wind
• Ice Storm
• Hail
• Winter Weather
• Riverine Flooding