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Data Centers in Milwaukee

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Milwaukee – A Stable Midwest Hub for Digital Infrastructure

Milwaukee presents a compelling, low-risk alternative to nearby Chicago for production and disaster recovery workloads. Its stable risk profile and attractive tax incentives offer a reliable and cost-effective environment for businesses that require high uptime without the premium cost and saturation of a primary Tier 1 market.

Milwaukee: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong regional and national network access.
Direct Cloud On-Ramps0 – as of September 2025Nearest on-ramps are in Chicago; private network extensions are readily available.
Power Cost$0.08–$0.10/kWh, as of September 2025Industrial electricity rates are competitive for the Midwest region.
Disaster RiskModerate (60.48), as of September 2025Low exposure to major catastrophic events like earthquakes or hurricanes.
Tax IncentivesYesState-level sales and use tax exemptions are available for qualified data centers.
Sales Tax5.00% (Wisconsin state), as of September 2025Additional local taxes may apply.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Milwaukee is served by over 9 network providers as of September 2025. The market features carrier-neutral facilities that provide access to a mix of regional and national carriers for reliable network redundancy.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Milwaukee as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated network extensions to the primary hub in Chicago, approximately 90 miles away.

Internet Exchange Points (IXPs): Public peering is limited within Milwaukee itself. Most interconnection occurs through private peering arrangements within local data centers or by connecting to the major exchange points in Chicago for access to hundreds of networks.

Bare Metal: Bare metal server options are available from providers with a presence in the region. These services can be sourced from national providers like Hivelocity or ColoCrossing, often deployed in nearby Chicago data centers to serve Milwaukee with low latency.

Power Analysis

Average Cost Of Power: Industrial power rates in the Milwaukee area generally range from $0.08 to $0.10 per kWh, as of September 2025. This competitive pricing structure can result in significant operational savings compared to more expensive coastal markets.

Power Grid Reliability: The region's power grid is well-engineered and stable, supported by redundant transmission paths and multiple substations in key industrial areas. This infrastructure is designed to support critical facilities requiring consistent, high-quality power.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Milwaukee serve the city's downtown business district and surrounding industrial corridors. This proximity provides low-latency connectivity for local manufacturing, healthcare, and financial services companies.

Regional Market Reach: Milwaukee acts as an effective hub for serving the population of Wisconsin and the broader Upper Midwest. It offers a strategic location for edge computing and disaster recovery solutions supporting operations in Chicago, Minneapolis, and Madison.

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 lowers the capital expenditure required to build out or refresh critical IT infrastructure.

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 primary environmental threats are driven by weather events rather than catastrophic geological activity. Key risks for the area include severe winter weather, tornadoes, hail, strong winds, and riverine flooding. The region has a very low risk of earthquakes and no exposure to hurricanes.

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