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All Data CentersIndiaChennai

Data Centers in Chennai

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Chennai – Gateway to Southern India

Executive Summary

Chennai is a primary colocation market for businesses targeting Southern India and key Southeast Asian markets. Its strategic location as a major subsea cable landing station provides exceptional low-latency connectivity, crucial for application performance and reaching millions of end-users. This makes it an essential hub for content delivery, cloud access, and disaster recovery.

Chennai: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAMajor subsea cable landing hub for South Asia.
Direct Cloud On-RampsOver 1 — as of September 2025Direct access available to AWS.
Power Cost≈$0.07/kWh — as of 2019Competitive rates for the region.
Disaster RiskHigh (5.5/10) — as of September 2025Primarily driven by flood, cyclone, and seismic risks.
Tax IncentivesNoNo specific data center incentives are currently offered.
Sales Tax18% GST — as of September 2025Standard national Goods and Services Tax applies.

Network & Connectivity Ecosystem

Chennai’s infrastructure is defined by its international connectivity, serving as a critical entry point for data into India.

Carrier Density & Carrier Neutrality: Over 21 network carriers are available in Chennai, providing solid redundant connectivity options, as of September 2025. The market features numerous carrier-neutral facilities, giving customers choice and flexibility in selecting providers.

Direct Cloud On-Ramps: Chennai provides direct cloud on-ramps to 1 cloud region, as of September 2025. This includes dedicated private access to AWS, enabling secure, high-performance hybrid cloud deployments.

Internet Exchange Points (IXPs): The primary exchange is the National Internet Exchange of India (NIXI), which facilitates local traffic peering and reduces latency for domestic users.

Bare Metal: Bare metal server solutions are readily available from multiple providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated server options in the region.

Power Analysis

Average Cost Of Power: The average industrial power cost in Chennai is approximately $0.07/kWh, as of 2019. This competitive pricing helps manage the significant operational expenses of high-density compute.

Power Grid Reliability: While the regional grid can experience fluctuations, data centers in Chennai are built with significant redundancy. Facilities typically feature multiple substation feeds, N+1 or 2N UPS systems, and extensive on-site generator backup to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located to serve Chennai’s thriving IT, automotive, and manufacturing sectors. Proximity to these business hubs minimizes latency for critical local applications and services.

Regional Market Reach: From Chennai, organizations can effectively serve the entire Southern India region, a market of hundreds of millions of people. Its coastal location and subsea cable connectivity also make it a strong launch point for reaching markets in Southeast Asia.

Tax Advantage For Data Centers: The primary tax consideration is the national Goods and Services Tax (GST), applied at a standard rate. There are currently no specific tax incentives or holidays for data center development or operation in the region.

Natural Disaster Risk

Overall, Chennai has a High disaster risk profile with a score of 5.5/10, as of September 2025. Key natural hazards that drive this rating include a very high risk from River Floods (9.2/10), followed by significant risks from Earthquakes (8.3/10), Tsunamis (7.8/10), Coastal Floods (7.8/10), and Tropical Cyclones (7.7/10). Data center selection should prioritize facilities engineered to mitigate these specific threats.

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