Data Centers in Ahmedabad
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Ahmedabad – Emerging Digital Hub for Western India
Ahmedabad is a developing colocation market strategically positioned to serve the industrial and commercial centers of Gujarat. For businesses requiring low-latency connectivity to this manufacturing and economic zone, Ahmedabad provides a cost-effective alternative to the primary Indian markets. Its location ensures efficient data delivery and application performance for a significant regional user base.
Ahmedabad: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional connectivity with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Mumbai; private network extensions are available. |
| Power Cost | ≈$0.07/kWh – as of September 2025 | Competitive industrial power rates support cost-effective operations. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Primarily driven by flood, earthquake, and cyclone risks. |
| Tax Incentives | No | No specific data center tax incentives are offered. |
| Sales Tax | 18% GST – as of September 2025 | Standard national Goods and Services Tax applies. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Ahmedabad has a growing ecosystem with over 2 providers operating 2 facilities, as of September 2025. Carrier-neutral options are available, providing diverse connectivity choices for enterprises deploying infrastructure in the region.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Ahmedabad, as of September 2025. Businesses connect to major cloud providers by establishing private network links to the primary interconnection hub in Mumbai.
Internet Exchange Points (IXPs): The local peering environment is still developing. Most critical peering occurs through private interconnects or via IXPs located in Mumbai, which serves as the national hub for traffic exchange.
Bare Metal: Bare metal server options are available in the region, typically through providers with a national presence. Companies like Hivelocity offer dedicated server solutions that can be deployed to serve the Ahmedabad market from nearby data hubs.
Power Analysis
Average Cost Of Power: Industrial electricity pricing in the region is approximately $0.07/kWh, as of September 2025. These competitive rates make high-density deployments more economical compared to many other global markets. The grid is primarily powered by fossil fuels (around 75%), with a growing share from renewables.
Power Grid Reliability: The power infrastructure supporting Ahmedabad's main industrial and data center zones is well-engineered for business continuity. While the broader national grid can face challenges, critical facilities utilize multiple substations, extensive battery backup, and on-site generator capacity to ensure uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Ahmedabad provide low-latency connections to the Gujarat International Finance Tec-City (GIFT City), a major financial and IT hub. They also serve the extensive manufacturing, petrochemical, and textile industries throughout the state of Gujarat.
Regional Market Reach: From Ahmedabad, organizations can effectively serve over 60 million people in Gujarat and reach key markets across Western India. Its strategic location reduces latency for end-users in this economically significant region.
Tax Advantage For Data Centers: India does not currently offer specific national tax incentives for data center construction or operation. The existing tax framework is uniform, with no targeted advantages that lower the cost of IT infrastructure investment.
Natural Disaster Risk
Ahmedabad faces a High risk profile, with an overall INFORM risk score of 5.5 out of 10, as of September 2025. The risk assessment reflects high hazard exposure combined with significant institutional and infrastructure vulnerability.
Key natural disaster risks for this market include:
- River Flood: The most significant natural hazard, with a score of 9.2.
- Earthquake: A high-risk factor, scoring 8.3.
- Tropical Cyclone: The region has considerable exposure, rated at 7.7.
- Drought: A notable risk with a score of 6.4.
