Data Centers in Milwaukee

Milwaukee – Central US Hub for Resilient Colocation

Milwaukee offers a compelling, low-risk alternative to more congested primary markets for businesses prioritizing uptime and cost-effective operations. Its strategic location provides low-latency access to Chicago and the Upper Midwest, making it an excellent choice for disaster recovery and secondary production sites that require robust, reliable infrastructure.

Milwaukee: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Milwaukee is served by over 9 network providers, as of September 2025. The market offers a solid mix of regional and national carriers, with multiple carrier-neutral facilities providing interconnection options.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Milwaukee as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, through dedicated network services to the primary interconnection hub in Chicago.

Internet Exchange Points (IXPs): While public peering is limited within Milwaukee itself, most interconnection occurs through private peering arrangements or via IXPs in nearby Chicago. This provides efficient and low-latency routes to national and global networks.

Bare Metal: Bare metal server options are available in the region, often through providers with a presence in the broader Chicago metropolitan area. Services from providers like Hivelocity and ColoCrossing can serve Milwaukee-based workloads effectively.

Power Analysis

Average Cost Of Power: Industrial electricity rates in the Milwaukee area are estimated to range from $0.08 to $0.11 per kWh, as of September 2025. These competitive power costs can significantly reduce the total cost of ownership for high-density deployments compared to larger markets.

Power Grid Reliability: The power grid serving Milwaukee's primary data center locations is well-engineered and stable. Facilities typically receive power from redundant substations, ensuring high levels of uptime and reliability for critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the Milwaukee area serve the city's diverse industrial base, including manufacturing, healthcare, and financial services. Proximity allows local enterprises to implement low-latency hybrid IT and data backup solutions.

Regional Market Reach: From Milwaukee, organizations can effectively serve Wisconsin and the broader Upper Midwest region. Its location less than 100 miles from Chicago makes it a natural disaster recovery site for deployments in the primary Illinois market.

Tax Advantage For Data Centers: Wisconsin provides a sales and use tax exemption on data center equipment, software, and construction materials for qualifying facilities. This incentive lowers the upfront capital investment and ongoing operational expenses for data center operators and their tenants.

Natural Disaster Risk

Milwaukee has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 60.48, as of September 2025. The area is not prone to catastrophic events like earthquakes or hurricanes, making it a secure location for critical infrastructure. The primary environmental risks are severe weather events common to the Midwest, including tornadoes, winter weather, strong winds, and riverine flooding.