Data Centers in Indore
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Indore – Central India's Emerging Data Hub
Indore is a strategic, emerging data center market for enterprises targeting the vast population and industrial base of central India. For businesses seeking geographic diversity away from the primary coastal hubs, Indore provides a cost-effective option to improve application performance and reduce latency for a significant, underserved region.
Indore: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good for a secondary market with developing national and international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connectivity is available via private network extensions to the nearest hub in Mumbai. |
| Power Cost | $0.07/kWh, as of 2019 | This competitive industrial rate helps manage high-density operational expenses effectively. |
| Disaster Risk | High (5.5/10), as of September 2025 | High risk is driven primarily by potential river flooding and earthquakes. |
| Tax Incentives | No | No specific data center incentives are currently in place. |
| Sales Tax | 18% GST, as of September 2025 | India's national Goods and Services Tax applies to colocation services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Indore provides access to over a dozen national and regional carriers. While the ecosystem is still developing compared to Mumbai, colocation facilities offer carrier-neutral environments, ensuring resilient connectivity options for enterprise needs.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Indore, with zero cloud regions locally available as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through private network extensions or dedicated circuits to the primary interconnection hub in Mumbai.
Internet Exchange Points (IXPs): Peering is primarily handled through national internet exchanges. For the most efficient traffic exchange and lowest latency, connections are typically routed to major IXPs located in Mumbai, which serves as the country's main peering point.
Bare Metal: Bare metal server options are available in the region, offering dedicated compute for performance-sensitive workloads. Providers such as Hivelocity and phoenixNAP can service deployments in the Indian market.
Power Analysis
Average Cost Of Power: The industrial electricity rate in this market is approximately $0.07/kWh, as of 2019. This competitive rate helps manage the significant operational costs of high-density compute and storage infrastructure.
Power Grid Reliability: The power grid supporting Indore's industrial zones is well-engineered for commercial needs. Data center operators ensure uptime with redundant power feeds from multiple substations, extensive battery backup systems, and on-site diesel generators.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Indore are positioned to serve the city's growing IT sector and the nearby Pithampur industrial belt, a major manufacturing and automotive hub. This proximity provides low-latency connectivity for local enterprises.
Regional Market Reach: Indore is an effective hub for delivering services across the state of Madhya Pradesh and into neighboring states. It provides a strategic digital outpost to serve tens of millions of users in central India.
Tax Advantage For Data Centers: India offers a standardized Goods and Services Tax (GST) framework, which simplifies tax compliance across states. While Indore does not currently offer specific data center incentives, the clear national tax structure provides predictability for financial planning.
Natural Disaster Risk
Indore has a High overall disaster risk profile, with a score of 5.5 out of 10, as of September 2025. Careful site selection and facility engineering are critical to mitigate these factors. The key natural hazards for this inland location are driven by weather and seismic activity.
The most significant risks requiring mitigation are:
- River Flood: Score 9.2
- Earthquake: Score 8.3
- Tropical Cyclone: Score 7.7
- Drought: Score 6.4
