Data Centers in Ahmedabad
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Ahmedabad – Strategic Hub for Western India
Executive Summary
Ahmedabad is a key emerging data center market for enterprises targeting the extensive industrial, financial, and manufacturing sectors across Gujarat and Western India. It provides a strategic, cost-effective colocation alternative or disaster recovery site to the primary hub of Mumbai. Deploying infrastructure here ensures low-latency performance for a significant economic region, supporting digital growth and application delivery.
Ahmedabad: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national connectivity with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access hubs are in Mumbai; private connectivity is available. |
| Power Cost | $0.07/kWh – as of 2019 | Competitive pricing supports scalable, high-density deployments. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Key risks include river flooding and significant seismic activity. |
| Tax Incentives | No | No specific data center incentives are offered; standard corporate tax rules apply. |
| Sales Tax | 18% GST – as of September 2025 | The standard Goods and Services Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Ahmedabad's data centers provide access to over 10 national and regional carriers, as of September 2025. The facilities are carrier-neutral, offering choice and competitive pricing for transit and transport services.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Ahmedabad, as of September 2025. The nearest cloud regions and interconnection points are in Mumbai. Businesses can establish secure, private connections to all major cloud providers via Layer 2 services and dedicated fiber from local facilities.
Internet Exchange Points (IXPs): The National Internet Exchange of India (NIXI) operates a point of presence in Ahmedabad. This IXP enables local networks to exchange traffic directly, reducing latency and improving performance for users within the region.
Bare Metal: Bare metal cloud solutions are available from providers with a presence in Western India. These services, offered by companies such as Hivelocity and Leaseweb, allow businesses to deploy dedicated servers for performance-intensive workloads.
Power Analysis
Average Cost Of Power: The average industrial electricity cost in the region is approximately $0.07/kWh, as of 2019. This competitive rate helps reduce the total cost of ownership for colocation and large-scale deployments.
Power Grid Reliability: The power grid serving Ahmedabad's main data center zones is well-engineered for commercial use. Major data centers offer redundant power feeds from multiple substations, backed by enterprise-grade UPS systems and diesel generators to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Ahmedabad provide low-latency connectivity to the Gujarat International Finance Tec-City (GIFT City), a major financial and technology hub. They also serve the area's dense concentration of manufacturing, pharmaceutical, and IT services industries.
Regional Market Reach: From Ahmedabad, organizations can effectively serve the entire state of Gujarat, with a population exceeding 60 million. It is also a logical secondary location for reaching customers across Western India, acting as a valuable complement to infrastructure in Mumbai.
Tax Advantage For Data Centers: India does not currently offer widespread, specific tax incentives for data center development or operations. The primary financial advantage is a predictable federal tax structure, which simplifies long-term investment and operational budgeting.
Natural Disaster Risk
Ahmedabad has a High natural disaster risk profile, with an INFORM score of 5.5 out of 10, as of September 2025. Careful site selection and facility engineering are essential to mitigate these regional threats.
The most significant natural hazards include:
- River Flood: 9.2/10
- Earthquake: 8.3/10
- Tropical Cyclone: 7.7/10
- Drought: 6.4/10
