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You are here: Home / White Paper / 5 Reasons Why the Minneapolis Data Center Market is Growing

5 Reasons Why the Minneapolis Data Center Market is Growing

By Kathy Hitchens - January 10, 2022

5 Reasons Why the Minneapolis Data Center Market is Growing

Minneapolis is a robust data center market. Source: Stream Data Centers

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A new white paper from Stream Data Centers outlines 5 of the top growth drivers for the Minneapolis data center market.

Minneapolis data center markets

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Minneapolis is known for a lot of things. It’s one half of the Twin Cities, hosts the MLB’s Minnesota Twins, and was the beloved home of The Artist Formerly Known as Prince. According to a new white paper from Stream Data Centers, it’s also “a robust data center market serving financial and healthcare enterprises as well as cloud hyperscalers.” Stream cites five things that are driving growth in this midwestern market.

First, the white paper discusses how available sales tax exemptions can translate into big savings. “Companies that build or refurbish data centers in Minneapolis may qualify for a sales tax exemption for 20 years on IT equipment, software, and electricity used to operate the data centers.” The paper compares these tax incentives to other markets across the country, showing Minneapolis firmly among the top 5.

Minnesota’s investment in their broadband infrastructure is the second driver explored in the paper. The third factor driving growth in the Minneapolis market is tied to the state’s support of renewable energy. According to the paper, “Minnesota has more financial incentives and regulatory policies promoting renewable energy than any other state except California. In addition, renewable energy options abound, and Minnesota is among the largest generators of renewable energy in the country.”

In addition to great opportunities for incentivized renewable energy, Minneapolis’s climate (with an annual mean average
normal temperature of just 47 degrees) allows for free cooling. – Stream Data Centers, “Data Center in Minneapolis? You Betcha! Here’s Why“

The cost of power is the fourth factor outlined by the authors. They note that while not the lowest-cost electricity market, Minneapolis is cheaper than high-cost markets such as New York, Silicon Valley, and Los Angeles. The fifth and final growth driver discussed is the business environment in general. The authors site both the lost cost of doing business in Minneapolis as well as its ranking as one of the top places to live.

In addition to the growth drivers, Stream Data Centers also shares how they have benefitted from being located in the Minneapolis Market.

Download the full report to learn more about the top growth drivers for the Minneapolis data center market.

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Tagged With: data center energy, Data Center Markets, Hyperscale, Stream Data Centers

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