WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. <ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the unaudited consolidated financial statements of McLeodUSA Incorporated and subsidiaries for the three and nine months ended September 30, 1999 and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 10,000 <PERIOD-TYPE> 3-MOS 9-MOS <FISCAL-YEAR-END> DEC-31-1999 DEC-31-1999 <PERIOD-START> JUL-01-1999 JAN-01-1999 <PERIOD-END> SEP-30-1999 SEP-30-1999 <CASH> 88,520 88,520 <SECURITIES> 57,780 57,780 <RECEIVABLES> 21,950 21,950 <ALLOWANCES> 3,880 3,880 <INVENTORY> 3,200 3,200 <CURRENT-ASSETS> 175,150 175,150 <PP&E> 123,720 123,720 <DEPRECIATION> 14,220 14,220 <TOTAL-ASSETS> 417,310 417,310 <CURRENT-LIABILITIES> 27,170 27,170 <BONDS> 180,120 180,120 <PREFERRED-MANDATORY> 100,000 100,000 <PREFERRED> 1 1 <COMMON> 150 150 <OTHER-SE> 106,400 106,400 <TOTAL-LIABILITY-AND-EQUITY> 417,310 417,310 <SALES> 24,110 64,490 <TOTAL-REVENUES> 24,110 64,490 <CGS> 12,190 32,740 <TOTAL-COSTS> 12,190 32,740 <OTHER-EXPENSES> 15,050 39,700 <LOSS-PROVISION> 540 1,600 <INTEREST-EXPENSE> 3,680 10,250 <INCOME-PRETAX> (5,840) (16,730) <INCOME-TAX> 0 0 <INCOME-CONTINUING> (5,840) (16,730) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (5,840) (16,730) <EPS-BASIC> (0.41) (1.18) <EPS-DILUTED> (0.41) (1.18)