Data Centers in Indore
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Indore – Emerging Digital Hub for Central India
Indore is establishing itself as a strategic, cost-effective data center market for businesses targeting Central India. Its location provides a crucial latency advantage for serving the country's interior, away from the crowded coastal hubs. For companies prioritizing regional availability and efficient power costs, Indore offers a compelling alternative for secondary or disaster recovery sites.
Indore: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good national connectivity, with developing international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Mumbai and Pune; private connections are available. |
| Power Cost | ≈$0.07/kWh – as of 2019 | Competitive industrial power rates support cost-effective operations. |
| Disaster Risk | High (5.5/10) – as of September 2025 | Notable risks from river flooding and seismic activity. |
| Tax Incentives | No – as of September 2025 | No specific data center tax incentives are currently offered. |
| Sales Tax | 18% (GST) – as of September 2025 | The general Goods and Services Tax rate applies. |
Network & Connectivity Ecosystem
Indore's connectivity landscape is growing, providing essential infrastructure for reaching markets in Central India. While not as dense as Mumbai, the ecosystem is sufficient for most enterprise and DR workloads.
Carrier Density & Carrier Neutrality: Carrier availability is developing, with a mix of national and regional providers present in the market. As of September 2025, there is a growing selection of fiber and IP transit options available within local data centers.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Indore as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through private network extensions to primary hubs such as Mumbai or Pune.
Internet Exchange Points (IXPs): Public peering is limited within Indore. Most network peering is conducted privately between carriers or routed through major national exchanges located in Mumbai.
Bare Metal: Bare metal server options are available, offering dedicated compute resources for performance-sensitive applications. Providers like Hivelocity can serve the region, providing infrastructure without the overhead of virtualization.
Power Analysis
Indore offers an attractive power profile, combining reasonable costs with an evolving grid infrastructure.
Average Cost Of Power: Industrial electricity costs are approximately $0.07/kWh, as of 2019. This competitive rate makes Indore a financially viable location for compute-heavy operations compared to more expensive global markets. The grid is primarily supplied by fossil fuels (~75%), with a growing share from renewables and nuclear sources.
Power Grid Reliability: The power grid supporting Indore's industrial zones is engineered for commercial needs. While regional power challenges exist across India, data centers in the area are built with standard redundancies, including UPS and generator backup, to ensure uptime.
Market Access, Business & Tax Climate
Indore's strategic position and business-friendly environment make it a key access point for one of India's fastest-growing regions.
Proximity To Key Business Districts: Data centers in Indore are well-positioned to serve the city's primary industrial sectors, including manufacturing, pharmaceuticals, and IT services. This proximity allows for low-latency connections essential for local enterprise operations.
Regional Market Reach: Indore is a logistical gateway to the states of Madhya Pradesh, Maharashtra, and Gujarat. Deploying infrastructure here allows businesses to effectively serve tens of millions of users and enterprises across Central India with improved application performance.
Tax Advantage For Data Centers: India does not currently offer widespread, specific tax incentives for data center construction or operation on a national level. The primary financial advantage comes from competitive operational costs, such as power, rather than direct tax breaks.
Natural Disaster Risk
Indore has a High-risk profile for natural disasters, with an overall INFORM score of 5.5 out of 10, as of September 2025. This assessment reflects significant exposure to specific environmental hazards and regional vulnerabilities.
Key natural risks for infrastructure planning include:
- River Flood: High risk (9.2/10)
- Earthquake: High risk (8.3/10)
- Tropical Cyclone: High risk (7.7/10)
- Drought: Moderate risk (6.4/10)
While coastal risks like tsunamis are not a direct threat to the inland city, businesses should engineer facilities to withstand significant seismic and flood events.
