<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS OF MCLEOD, INC. AND SUBSIDIARIES FOR
THE THREE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<CASH>                                     366,999,000
<SECURITIES>                               107,190,000
<RECEIVABLES>                               30,089,000
<ALLOWANCES>                                 3,889,000
<INVENTORY>                                  2,409,000
<CURRENT-ASSETS>                           481,940,000
<PP&E>                                     123,617,000
<DEPRECIATION>                               8,105,000
<TOTAL-ASSETS>                             779,654,000
<CURRENT-LIABILITIES>                       72,066,000
<BONDS>                                    304,304,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       525,000
<OTHER-SE>                                 393,702,000
<TOTAL-LIABILITY-AND-EQUITY>               779,654,000
<SALES>                                     35,747,000
<TOTAL-REVENUES>                            35,747,000
<CGS>                                       21,200,000
<TOTAL-COSTS>                               21,200,000
<OTHER-EXPENSES>                            27,605,000
<LOSS-PROVISION>                               502,000
<INTEREST-EXPENSE>                           2,447,000
<INCOME-PRETAX>                            (13,355,000)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                        (13,355,000)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (13,355,000)
<EPS-PRIMARY>                                   (0.26)
<EPS-DILUTED>                                   (0.26)