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Data Centers in Pune

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Pune – Strategic Hub for Western India

Executive Summary

Pune is a primary data center market for enterprises serving Western India and those seeking a robust disaster recovery location for operations in Mumbai. The city provides a compelling balance of developing digital infrastructure and competitive operational costs. Deploying in Pune ensures low-latency access to a major industrial and technological corridor.

Pune: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong domestic connectivity with growing direct international access points.
Direct Cloud On-RampsOver 1 – as of September 2025Direct connection to Microsoft Azure is available locally.
Power Cost$0.07/kWh – as of 2019Competitively priced power supports high-density deployments.
Disaster RiskHigh (5.5/10) – as of September 2025Primary risks are seismic activity and river flooding.
Tax IncentivesNo – as of September 2025No specific data center tax incentives are currently offered.
Sales Tax18% GST – as of September 2025A standard Goods and Services Tax applies to colocation services.

Network & Connectivity Ecosystem

Pune's connectivity landscape is rapidly maturing, providing reliable infrastructure for local and regional business operations. The market is becoming a key interconnection point outside of Mumbai.

Carrier Density & Carrier Neutrality The market includes over 7 unique network carriers as of September 2025. A healthy mix of national and regional providers is available in the top carrier-neutral facilities, offering sufficient redundancy and choice for enterprise needs.

Direct Cloud On-Ramps With over 1 on-ramp available, Pune provides dedicated, low-latency access to 1 cloud region as of September 2025. Direct interconnection is available for Microsoft Azure. Access to other major clouds is achieved via private network extensions from nearby Mumbai.

Internet Exchange Points (IXPs) The National Internet Exchange of India (NIXI) has a presence in Pune, facilitating efficient local traffic exchange and reducing latency for domestic users. Most large-scale peering, however, is still conducted privately or through facilities in Mumbai.

Bare Metal Bare metal server options are readily available from multiple providers. Global suppliers like Hivelocity offer dedicated server solutions in the Pune market, allowing for infrastructure deployment without capital expenditure.

Power Analysis

Power in Pune is both cost-effective and reliable, particularly within the designated IT parks and industrial zones where data centers are concentrated.

Average Cost Of Power Industrial power costs average approximately $0.07/kWh as of 2019. This competitive rate makes Pune an attractive location for scaling compute-intensive workloads while managing operational expenses.

Power Grid Reliability The power grid supporting Pune's primary data center zones is well-engineered, with many facilities fed by redundant substations. The energy mix for the region is dominated by fossil fuels, with a growing share from renewables.

Market Access, Business & Tax Climate

Pune offers excellent access to one of India's most dynamic economic regions, supported by a business-friendly environment, though it lacks specific tax incentives for data centers.

Proximity To Key Business Districts Data centers in Pune are strategically located near major IT hubs like Hinjewadi, Magarpatta, and Kharadi. This proximity provides low-latency connectivity to the city's dense ecosystem of software companies, automotive manufacturers, and biotechnology firms.

Regional Market Reach Pune serves as a critical hub for Western India, reaching a large and economically significant population. It is also an ideal secondary or disaster recovery site for businesses with a primary footprint in Mumbai, located approximately 150 km away.

Tax Advantage For Data Centers There are no specific tax incentives for data center development or operation in Pune as of September 2025. The primary financial advantage stems from lower operational costs, including power and real estate, compared to other top-tier markets in the region.

Natural Disaster Risk

Pune has a high overall disaster risk profile, rated 5.5 out of 10, primarily driven by environmental and man-made hazards as of September 2025. Data center selection requires careful evaluation of facility engineering and mitigation strategies.

The most significant natural hazard risks for infrastructure in Pune are:

  • River Flood: Scored 9.2/10, representing a significant risk in low-lying areas.
  • Earthquake: Scored 8.3/10, as the region is in a seismically active zone.
  • Tropical Cyclone: Scored 7.7/10, though the inland location mitigates the worst effects.
  • Drought: Scored 6.4/10, which can impact water resources and power generation.
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