Data Centers in Indore
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Indore – Emerging Digital Hub for Central India
Indore is establishing itself as a strategic data center market for businesses targeting Central India's growing economy. For companies that require low-latency access to this developing region, Indore provides a cost-effective alternative to the saturated primary markets of Mumbai and Chennai. This location is ideal for disaster recovery sites and for serving the region's expanding manufacturing and IT sectors.
Indore: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable national connectivity, with latency to major hubs being a key consideration. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | No direct on-ramps. Access clouds via network extensions from Mumbai or Pune. |
| Power Cost | ≈$0.07/kWh – as of 2019 | Competitive industrial power rates support cost-effective, high-density deployments. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Elevated risk profile driven primarily by flood and seismic activity potential. |
| Tax Incentives | No | No specific data center incentives are currently offered at the national level. |
| Sales Tax | 18% GST (general) – as of September 2025 | The standard Goods and Services Tax applies to hardware and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Indore’s data centers provide access to a foundational set of national and regional carriers, with over a dozen providers available as of September 2025. Carrier-neutral facilities offer the primary interconnection points in the market.
Direct Cloud On-Ramps: There are no direct, in-market cloud on-ramps from major providers as of September 2025. Businesses connect to cloud regions by extending their networks to the primary hubs of Mumbai or Pune, using private lines or wavelength services.
Internet Exchange Points (IXPs): Public peering is limited within Indore. Most traffic exchange occurs through private peering arrangements or is routed through larger national exchanges located in major metropolitan areas like Mumbai.
Bare Metal: Bare metal server options are available, offering dedicated compute for performance-sensitive workloads. Providers like Hivelocity can service the region, typically deploying from facilities in the larger Indian metros.
Power Analysis
Average Cost Of Power: The industrial electricity rate in the region is approximately $0.07/kWh, as of 2019. This competitive pricing makes running power-intensive operations more economical compared to many other global markets.
Power Grid Reliability: The power grid supporting Indore's industrial zones is generally stable and suitable for commercial operations. Data centers in the area are engineered with standard redundancies, including UPS systems and backup generators, to ensure consistent uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Indore serve the city's Special Economic Zone (SEZ) and the Pithampur industrial belt, which hosts significant manufacturing, pharmaceutical, and automotive industries. This proximity enables low-latency support for local enterprise operations.
Regional Market Reach: Indore provides effective digital access to the state of Madhya Pradesh and neighboring states in Central India. It is a logical point of presence for serving a population of over 75 million people in the immediate region.
Tax Advantage For Data Centers: India does not offer specific national tax incentives for data center construction or operation. The primary financial advantage comes from competitive operational costs, such as power and real estate, rather than direct tax relief.
Natural Disaster Risk
Indore has a High-risk profile, with an INFORM Risk score of 5.5 out of 10 as of September 2025. The rating reflects significant exposure to specific natural hazards and regional vulnerabilities.
Key risks for infrastructure planning include:
- River Flood: The highest natural hazard score (9.2), indicating significant risk from regional river systems.
- Earthquake: A high potential for seismic activity (8.3).
- Tropical Cyclone: Susceptibility to the secondary effects of cyclones moving inland (7.7).
- Drought: A notable risk that can impact water resources and power generation (6.4).