Data Centers in Indiana

Indiana – A Low-Risk Hub for Central US Reach

Indiana provides a compelling, low-risk environment for data center operations, particularly for businesses requiring a central US presence to serve the Midwest. The state combines favorable tax policies with a low natural disaster profile, offering a stable and cost-effective alternative to coastal hubs for production workloads and disaster recovery sites.

Indiana: At A Glance

Network & Connectivity Ecosystem

Indiana's connectivity is centered in Indianapolis, offering reliable access to national networks. While not a primary interconnection hub like Chicago, it has a capable and growing ecosystem.

Carrier Density & Carrier Neutrality With approximately 29 data centers and over 16 carriers, Indiana offers a good selection of carrier-neutral facilities, as of September 2025. This environment allows businesses to create redundant network architectures without relying on a single provider.

Direct Cloud On-Ramps As of September 2025, there are no direct public cloud on-ramps located within Indiana. Businesses connect to cloud providers primarily through Chicago, which is reachable via low-latency dedicated circuits. This well-established path ensures reliable access to all major cloud platforms.

Internet Exchange Points (IXPs) The primary exchange is the Midwest IX in Indianapolis. This IXP facilitates direct traffic exchange between local and regional networks, reducing latency and lowering costs by keeping local traffic local.

Bare Metal Bare metal server options are available, primarily from providers located within Indianapolis-area data centers. Providers like ColoCrossing offer dedicated server solutions that give businesses full control over their hardware.

Power Analysis

Average Cost Of Power Industrial electricity rates in Indiana typically range from $0.08 to $0.10 per kWh, as of September 2025. This competitive pricing structure helps significantly in managing the high operational costs associated with dense computing environments.

Power Grid Reliability The power grid is reliable, supported by a generation mix heavily weighted toward coal and natural gas. Major data center corridors in the state are served by infrastructure designed for industrial loads, often with access to redundant power feeds from separate substations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Indiana, particularly around Indianapolis, are well-positioned to serve the state's advanced manufacturing, logistics, and life sciences industries. This proximity enables low-latency performance for critical local business applications.

Regional Market Reach Strategically located, Indiana offers excellent low-latency connectivity to major Midwest markets including Chicago, Cincinnati, Columbus, and Louisville. A deployment in Indiana can effectively serve a large portion of the central US population.

Tax Advantage For Data Centers Indiana offers a significant sales and use tax exemption on qualifying data center equipment and electricity. This incentive directly reduces the high capital expense of building out a facility and lowers ongoing power-related operational costs.

Natural Disaster Risk

Indiana has a moderate natural disaster risk profile, with a FEMA National Risk Index Score of 35.35, as of September 2025. The state's inland location completely removes any threat from hurricanes or coastal flooding.

Key risks are primarily atmospheric and geologic. The most significant threats include tornado, strong wind, hail, winter weather, and earthquake risk from the distant New Madrid Seismic Zone.