Data Centers in Indiana

Indiana – Midwest Hub for Cost-Effective Colocation

Indiana presents a compelling option for enterprises looking for a stable, low-risk, and cost-effective location for their digital infrastructure. The state's strategic Midwest location, combined with significant tax incentives and a low natural disaster risk profile, makes it an excellent choice for secondary disaster recovery sites and latency-tolerant workloads that prioritize operational uptime and budget predictability.

Indiana: At A Glance

Network & Connectivity Ecosystem

Indiana's connectivity is solid, anchored by its proximity to major national fiber routes that pass through the region. While it's not a primary interconnection hub itself, it offers reliable access to larger markets.

Carrier Density & Carrier Neutrality: Indiana is served by over 16 unique network providers as of September 2025. The market features numerous carrier-neutral facilities, particularly around Indianapolis and South Bend, providing choice and competitive pricing for transit and transport services.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Indiana. Businesses requiring dedicated, low-latency cloud access typically connect to providers in the primary hub of Chicago via private network extensions, dark fiber, or wavelength services.

Internet Exchange Points (IXPs): Public peering is limited within the state. Most interconnection occurs privately between carriers or is routed through major exchanges in nearby Chicago to achieve efficient traffic exchange.

Bare Metal: Bare metal server options are available from providers operating within Indiana's colocation facilities. Providers like Hivelocity and ColoCrossing can service deployments in the region, offering dedicated hardware for performance-sensitive applications.

Power Analysis

Indiana's power infrastructure is a key advantage for data center operators, offering stability and cost-effective energy.

Average Cost Of Power: While specific industrial electricity prices fluctuate, the state's power mix relies heavily on coal (~65%) and natural gas (~21%) as of September 2025. This composition generally results in predictable and competitive energy costs compared to national averages, directly impacting total cost of ownership for high-density deployments.

Power Grid Reliability: The electrical grid serving Indiana's primary data center markets is well-engineered and reliable. Facilities frequently offer multi-substation support and redundant power feeds to ensure high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Indiana provides a business-friendly environment with strategic access to major commercial centers throughout the American Midwest.

Proximity To Key Business Districts: Data centers in the Indianapolis metro area are well-positioned to serve the city's growing tech, healthcare, and logistics sectors. Facilities in Northern Indiana, such as South Bend, provide low-latency connectivity to the Chicago market without the associated costs.

Regional Market Reach: From a central Indiana location, infrastructure can effectively serve a large population radius covering cities like Chicago, Cincinnati, Louisville, and Columbus within a few milliseconds of latency. This makes it an ideal disaster recovery location for businesses in those primary markets.

Tax Advantage For Data Centers: Indiana provides a targeted sales and use tax exemption for qualifying data center equipment and energy. This incentive significantly reduces the upfront capital expenditure and ongoing operational costs associated with building and running a data center, making the state financially attractive.

Natural Disaster Risk

Indiana has a moderate natural disaster risk profile, making it a secure location for critical infrastructure.

As of September 2025, Indiana has a FEMA National Risk Index score of 35.35, categorized as "Very Low" nationally. The primary environmental risks are atmospheric and include tornadoes, strong winds, hail, and winter weather. The state has a very low risk of earthquakes and is not exposed to hurricanes or coastal flooding, which contributes to its stability for data center operations.