Nebraska on the Powerplay: Why Hyperscalers Are Choosing the Heartland

In the race to build digital infrastructure capable of supporting the ever-growing demands of data-intensive applications, the Midwest has emerged as a strategic hotspot. At the heart of this evolution is Nebraska—a state traditionally known for its agricultural roots, now rapidly becoming a preferred destination for hyperscalers.

The reasons behind this Heartland hyperscaler shift are compelling, combining economic advantages, geographic benefits and robust connectivity. Nebraska is most definitely on a powerplay, and it’s not slowing down anytime soon.

Strategic Location and Low Latency Advantage

Nebraska’s central location in the United States makes it an ideal hub for hyperscalers seeking low-latency connections to major population centers. Omaha, in particular, sits at the crossroads of east-west and north-south fiber routes, enabling rapid data transmission to key markets like Chicago, Dallas, Denver and beyond. This strategic positioning minimizes latency and enhances performance for latency-sensitive applications, from artificial intelligence (AI) and machine learning (ML) to video streaming and real-time analytics.

For hyperscalers, whose operations hinge on delivering seamless user experiences, this geographic advantage is critical. By colocating in Nebraska, companies can reduce the time it takes for data to travel to end-users, ensuring optimal performance.

Affordable Power and Renewable Energy Potential

Power is a non-negotiable resource for hyperscalers and Nebraska delivers on this front. The state boasts some of the most affordable electricity rates in the country, a major draw for hyperscalers operating massive data centers that consume enormous amounts of energy.

Nebraska’s commitment to renewable energy further strengthens its appeal. With a growing portfolio of wind and solar power projects with players such as Google signing a Nebraska solar energy deal for a power purchase agreement, the state offers hyperscalers an opportunity to meet sustainability goals without sacrificing cost-efficiency. As organizations worldwide strive to reduce their carbon footprints, access to green energy sources has become a top priority. Nebraska’s ability to deliver reliable, affordable and clean power makes it a competitive choice.

Business-Friendly Environment

Nebraska’s pro-business policies and supportive regulatory environment are additional factors driving hyperscalers to the region. The state offers incentives such as tax abatements and infrastructure grants, which reduce the cost of establishing and operating data centers. This favorable climate has attracted a wave of investment in digital infrastructure, positioning Nebraska as a forward-thinking hub for innovation.

The local workforce is also skilled, reliable and growing, bolstered by educational programs that prepare workers for careers in data center operations, engineering and IT support. This combination of economic incentives and human capital makes Nebraska a powerful magnet for hyperscalers.

Robust Connectivity: The 1623 Farnam Difference

No discussion about Nebraska’s rise as a hyperscaler destination is complete without highlighting the role of 1623 Farnam. As Omaha’s premier carrier-neutral edge data center and interconnection hub, 1623 Farnam is a critical enabler of the state’s digital transformation. The facility offers direct access to over 60 carriers, robust peering opportunities, and connectivity to major cloud providers, ensuring that hyperscalers can achieve the high-speed, low-latency performance they require.

1623 Farnam’s location at the nexus of national fiber routes amplifies Nebraska’s natural geographic advantages. Hyperscalers colocating at 1623 Farnam benefit from unparalleled connectivity, ensuring that their infrastructure is prepared to meet current demands and scale seamlessly for the future.

As hyperscalers continue to seek locations that combine low costs, high connectivity and sustainable energy, Nebraska has proven itself to be a top contender. The state’s unique blend of geographic, economic and technological advantages positions it as a leader in the next wave of digital infrastructure development.

For hyperscalers looking to establish a presence in Nebraska, 1623 Farnam is the ultimate partner. With state-of-the-art facilities, unmatched connectivity and a commitment to enabling digital growth, 1623 Farnam ensures your operations are future-ready.