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Cleveland, Ohio is emerging as a strategic hub for businesses seeking robust and efficient data center solutions. With 20 data centers and growing, Cleveland is now the second largest data center market in Ohio, after Columbus. Cleveland colocation services offer customers many advantages, including affordability, location, and climate.

The growing Cleveland data center market reflects the city’s dedication to fostering a cutting-edge business environment. Let’s explore more together.

Cleveland Has a Diverse Economy

Cleveland’s economy, with its blend of manufacturing heritage and growing tech sector, provides a stable and supportive environment for infrastructure growth. With a total population of over 360,000 and a GDP per capita of $72,000, Cleveland, OH, ranks as the 45th largest city in the United States.

Cleveland boasts a multifaceted economy driven by the healthcare, manufacturing, and finance sectors. Furthermore, Cleveland is the central hub for the Fourth District of the US Federal Reserve Bank. This diverse economic foundation means that data centers in the region cater to a broad spectrum of businesses.

In addition to the bustling financial economy, Metropolitan Cleveland is home to nine Fortune 500 companies, including Progressive and Cleveland-Cliffs. The presence of these large firms leads to an increased demand for data center services. This economic backdrop makes Cleveland a desirable location for data centers.

Cleveland Has the Advantage of a Strategic Position

60% of the U.S. population resides within 600 miles of Ohio. Cleveland’s strategic position in the heart of the Midwest is not just a geographical advantage, but also a digital one. Low latency connectivity from Cleveland to major markets including New York, Chicago, Philadelphia, Indianapolis, Detroit, and Toronto, make the city an excellent location for data center services.

Cleveland is also generally safe from major natural disasters like hurricanes or earthquakes. This means fewer unexpected interruptions and better reliability for data centers. Plus, with its well-connected roads and airports, Cleveland is easy to access, making it a practical choice for many businesses looking for a data center.

Lastly, the city’s location within the Great Lakes region brings advantages in climate. The relatively cooler climate in Cleveland reduces the costs associated with cooling data centers. Natural cooling can be harnessed for a significant portion of the year. The reduced cost of cooling leads to greater affordability for Cleveland data centers.

Cost-Efficiency in Cleveland

In addition to the reduced cost of cooling, Cleveland offers other financial benefits. Cleveland offers extremely affordable real estate. The city’s residential market was rated as the most affordable in the United States in 2023. Office rents were only $17.39 per square foot at the end of 2022, which is less than half of the $38 per square foot national average. Lower real estate prices translate to lower data center prices.

Electricity, another significant cost driver for data centers, is also more affordable here. The average cost of 14.47 cents per kW hour is lower than the average in Ohio and the United States. As electrical costs are one of the biggest drivers of price, lower rates mean more competitive data center rates.

Moreover, general operational expenses in Cleveland, from staffing to maintenance, tend to be more budget-friendly. For data center operators and their clients, the combination of cost advantages – real estate, electricity, and operations – promotes growth and enhances profitability, making Cleveland a compelling choice in the data center colocation market.

Cleveland Enjoys Data Center Friendly Tax Policies

In 2011, Ohio began offering different tax incentives to data centers. One desirable tax policy Cleveland has is offering qualified data center providers and tenants a 100% sales tax exemption for IT equipment like servers, routers, and storage devices. To make it more accessible, in early 2014, Ohio updated a pre-existing law to broaden the sales tax abatement. Now, it covers both eligible data center owners and clients of qualifying data center sites.

Another policy is property tax abatements. Some local governments in Ohio offer property tax abatements to data centers in a bid to attract data center investments to the city. According to Good Jobs First, sales tax exemptions for data centers in Ohio have saved companies $19.8 million over the last four years.

These benefits can help data centers in Cleveland reduce their tax liability and increase their profitability, making it an attractive location for expansion.

Leading Cleveland Data Center Providers

If you are exploring colocation pricing in Cleveland, here are a few providers we recommend to our clients. Contact Brightlio for a quote on any of these options.

Expedient

Expedient operates two colocation centers in Cleveland: Garfield Heights 1 and 2. The facilities combine to offer 4.7 MW of critical IT load and 66,800 square feet of data center space.

Why we like Expedient:

• Expedient offers a national colocation footprint with other data centers in Boston, Denver, Phoenix, Pittsburgh, Milwaukee, Indianapolis, and Baltimore. This makes Expedient a great fit for a national data center strategy.

• Carrier neutral facility with nine on-net providers, plus offer 100 Gig connectivity between data centers.

• Expedient maintains a stringent security framework with SOC 1 & 2 reports and HITRUST validations.

• Commitment to data privacy is evident with PCI DSS and EU-U.S. Privacy Shield GDPR compliance.

H5 Data Centers

H5’s Cleveland Technology Center is a state-of-the-art colocation facility located at 1625 Rockwell Ave. Spanning 351,000 square feet, it offers industry leading security measures, including on-site personnel, physical security and two-factor authentication.

Why we like H5 Data Centers:

• The Cleveland facility offers impressive latency, efficiently connecting to cities like Ashburn, Chicago, and New York.

• Equipped with 2N UPS Power and a 48-hour diesel runtime for uninterrupted power.

• Utilizes advanced cooling systems, ensuring optimal equipment temperatures.

• Maintains stringent compliance standards, including SOC 2 and ISO 27001.

DataBank

Located at 1255 Euclid Ave, the CLE1 facility covers 7,440 square feet of raised floor space. It is conveniently located in the newly renovated Euclid corridor in downtown Cleveland.

Why we like DataBank:

• 12 on-site carriers offer robust connectivity tailored to customers prioritizing speed and network reliability.

• It is home to the first commercially available 100-gigabit fiber network in the U.S.

• Power specifications include 120V, 208V, and 3P AC for versatile equipment compatibility.

• Cooling is optimized with an N+1 design, ensuring equipment remains at ideal temperatures.

BlueBridge Networks

BlueBridge Networks is a regional data center provider with facilities in Cleveland and Columbus, Ohio. They operate two Cleveland data centers with one location in downtown Cleveland, and another in nearby Mayfield Heights.

Why we recommend BlueBridge Networks:

• They are a local provider that is committed to the community

• Their customers speak very highly of their support services.

• The offer a broad array of services including managed IT, cloud, and backup.

• They meet compliance standards including HIPAA, FERPA, and PCI.

Brightlio Offers Cleveland Colocation Services!

If you’re looking for a Cleveland data center, Brightlio is your preferred partner. As a telecommunications and colocation broker, we offer colocation solutions through our national network of data center partners.

In addition to our colocation services, we offer in cloud solutions, network connectivity, unified communications, and advisory services. Brightlio offers you a comprehensive technology solution that is tailored to propel your business to new heights. We are dedicated to becoming your most dependable and responsive technology partner.

Ready to transform your enterprise’s tech strategy? Get started with Brightlio today!

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