Data Centers in Ahmedabad
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Ahmedabad – Emerging Digital Hub for Western India
Ahmedabad is a rapidly growing data center market, ideal for enterprises requiring low-latency infrastructure within Gujarat's vibrant industrial and financial sectors. This market provides a crucial alternative to Mumbai for disaster recovery and serving the region's expanding digital economy, ensuring high-speed access to applications and services for millions of users.
Ahmedabad: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A strong, developing market with good national and regional fiber connectivity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Mumbai, accessible via private network extensions. |
| Power Cost | ≈$0.07/kWh – as of 2019 | Competitively priced industrial power supports cost-effective data center operations. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Primarily driven by flood and seismic risks, requiring robust facility engineering. |
| Tax Incentives | No | No specific tax incentives for data centers have been identified. |
| Sales Tax | 18% GST (general) – as of September 2025 | The standard Goods and Services Tax applies to colocation and related services. |
Network & Connectivity Ecosystem
Ahmedabad's connectivity ecosystem is developing quickly, positioning it as a key secondary market in India.
Carrier Density & Carrier Neutrality The market is served by over 2 carriers as of September 2025, offering diverse routing options. Carrier-neutral facilities provide the necessary environment for interconnection and resilience.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Ahmedabad's data centers as of September 2025. Businesses connect to the 0 cloud regions available in India primarily through network links to Mumbai, the closest and most connected cloud hub.
Internet Exchange Points (IXPs) The local ecosystem benefits from the presence of NIXI (National Internet Exchange of India). This IXP enables local traffic exchange, which reduces latency for end-users in the region by keeping data flows within the local network.
Bare Metal Bare metal server options are available, providing dedicated, high-performance computing resources. Providers like Hivelocity offer deployment capabilities in the region, suitable for workloads that demand direct hardware access and consistent performance.
Power Analysis
Average Cost Of Power The average cost for industrial power is approximately $0.07/kWh as of 2019. This competitive rate makes large-scale deployments more economical compared to many other global markets.
Power Grid Reliability The power grid in Ahmedabad's commercial zones is relatively stable, supported by modern infrastructure. Data centers in the area are engineered with significant redundancy, including multiple substations, UPS systems, and on-site generators to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Ahmedabad are strategically located to serve the Gujarat International Finance Tec-City (GIFT City), a major financial and IT hub. Proximity to these zones reduces latency for financial trading platforms and enterprise applications.
Regional Market Reach Ahmedabad provides effective digital infrastructure access for the entire state of Gujarat, one of India's most industrialized states. It also serves as a viable disaster recovery location for businesses with a primary presence in Mumbai.
Tax Advantage For Data Centers Currently, there are no specific tax incentives targeted directly at data center development or operation in the region. The primary financial advantage comes from the market's competitive power pricing and operational costs.
Natural Disaster Risk
Ahmedabad has a High overall disaster risk profile, with a score of 5.5 out of 10 as of September 2025. This assessment reflects significant exposure to specific natural and human-related hazards.
Data center selection requires careful evaluation of facility engineering and mitigation strategies. Key natural hazards for the region include:
- River Flood: (9.2/10) The most significant risk due to proximity to the Sabarmati River.
- Earthquake: (8.3/10) The region is in a seismically active zone.
- Tropical Cyclone: (7.7/10) While inland, the area can be affected by cyclones making landfall in Gujarat.
- Drought: (6.4/10) Periods of severe drought can impact water resources, which are important for cooling.
