Data Centers in Indiana

Indiana – Strategic Midwest Colocation Hub

Indiana offers a compelling colocation environment for businesses prioritizing cost control, low-latency access to Midwest markets, and a stable risk profile. Its central location, attractive tax incentives, and reliable infrastructure make it an excellent choice for disaster recovery, secondary compute sites, and edge deployments serving major metropolitan areas like Indianapolis and Chicago.

Indiana: At A Glance

Network & Connectivity Ecosystem

Indiana's connectivity is solid, anchored by its proximity to Chicago's primary interconnection hubs. While not a top-tier market itself, it functions as a cost-effective and reliable extension of the national network backbone.

Carrier Density & Carrier Neutrality: Indiana has over 15 unique network providers operating within its data centers as of September 2025. The majority of colocation facilities offer carrier-neutral environments, providing choice and competitive pricing for transit and transport.

Direct Cloud On-Ramps: There are no direct, in-state public cloud on-ramps as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated circuits to facilities in nearby Chicago.

Internet Exchange Points (IXPs): The primary exchange is the Midwest IX in Indianapolis, which facilitates local peering to reduce latency for in-state traffic. Most national and international peering occurs through private connections or via IXPs in Chicago.

Bare Metal: Bare metal server options are available from providers like Hivelocity and ColoCrossing, often located in facilities in the northern part of the state, offering low-latency connections to Chicago.

Power Analysis

Indiana’s power infrastructure is a key advantage, offering reliable service and competitive pricing, though the generation mix is heavily dependent on fossil fuels.

Average Cost Of Power: Industrial electricity rates are estimated to be between $0.08 and $0.10 per kWh as of September 2025. These competitive rates can significantly reduce operational expenditures for high-density deployments. The state's power mix is approximately 65% coal and 21% natural gas.

Power Grid Reliability: The power grid supporting Indiana's data center corridors is well-engineered and stable. Major facilities are typically served by redundant substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Indiana combines a business-friendly tax environment with a strategic location ideal for reaching customers across the American Midwest.

Proximity To Key Business Districts: Data centers are concentrated around Indianapolis, the state's economic and governmental center, serving a growing tech sector. Facilities in Northern Indiana, particularly near South Bend, provide excellent proximity to the Chicago metropolitan area.

Regional Market Reach: From a central Indiana location, network latency is low to a massive population base, including Chicago, Cincinnati, Columbus, and Louisville. This makes it an ideal hub for content delivery and application hosting for the greater Midwest.

Tax Advantage For Data Centers: Indiana provides a specific sales and use tax exemption for qualifying data center equipment and energy consumption. This incentive directly lowers both the initial capital investment and ongoing operational costs, making the total cost of ownership highly competitive.

Natural Disaster Risk

Indiana has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 35.35 out of 100 as of September 2025. The risks are primarily weather-related, with no significant exposure to hurricanes, widespread wildfires, or major seismic activity.

Key environmental risks include tornadoes, strong wind events, hail, and winter weather. Other notable risks are potential heat waves, drought, and lightning. The state's inland location shields it from all coastal and hurricane-related threats.