Data Centers in Columbus
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Columbus – Cost-Effective Midwest Colocation
Executive Summary
Columbus, Indiana, is an emerging edge market ideal for companies needing a stable, low-cost operating environment for disaster recovery or latency-sensitive applications serving the Midwest. Its primary advantage lies in favorable tax incentives and a low natural disaster risk profile, which helps control both upfront capital investment and long-term operational costs. This market is a practical choice for workloads that require geographic diversity without the expense of a primary data center hub.
Columbus: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but fewer long-haul fiber routes than primary markets. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access requires private connectivity to major hubs like Chicago or Indianapolis. |
| Power Cost | $0.07 – $0.09/kWh, as of September 2025 | Competitive industrial power rates contribute to lower operational expenses. |
| Disaster Risk | Moderate (NRI Score: 35.35), as of September 2025 | Main risks are primarily severe weather events; very low seismic and hurricane risk. |
| Tax Incentives | Yes | Indiana offers a sales tax exemption for qualifying data center equipment and energy. |
| Sales Tax | 7.00%, as of July 2025 | The state sales tax rate, which may be offset by data center-specific incentives. |
Network & Connectivity Ecosystem
Columbus provides fundamental connectivity suitable for regional enterprise and edge computing needs. While it is not a major interconnection hub, it offers reliable access to larger Midwest markets.
Carrier Density & Carrier Neutrality The market includes access to over 4 carriers, as of September 2025. While modest, this provides sufficient redundancy for most enterprise applications. The available colocation facility operates on a carrier-neutral basis, allowing flexibility in network procurement.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Columbus, as of September 2025. Secure, high-performance cloud access is achieved via dedicated network connections to major interconnection hubs like Indianapolis or Chicago. Private network extensions are the standard for connecting to AWS, Google Cloud (GCP), and Microsoft Azure from this location.
Internet Exchange Points (IXPs) Public peering is not a feature of the Columbus market. The majority of network peering is conducted privately between carriers or routed through larger exchange points in Indianapolis and Chicago.
Bare Metal Bare metal server options are available, typically through providers that service edge locations. Companies like Hivelocity and ColoCrossing can provide dedicated server infrastructure in regional markets, enabling compute resources closer to end-users in the Ohio Valley.
Power Analysis
Average Cost Of Power Industrial electricity rates in the Columbus area range from approximately $0.07 to $0.09 per kWh, as of September 2025. This competitive pricing makes the market attractive for companies with power-dense deployments, directly lowering operational expenditures over the life of the investment. The state's grid is predominantly powered by coal and natural gas.
Power Grid Reliability The power grid serving the region is well-engineered and stable, consistent with standards for modern industrial parks in the United States. Local data centers are typically supported by redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Columbus are well-positioned to support the advanced manufacturing, logistics, and automotive industries that form the economic backbone of central Indiana. This proximity allows for low-latency connections essential for factory automation and supply chain management systems.
Regional Market Reach From Columbus, digital services can be delivered with low latency to a significant population across Indiana, Ohio, and Kentucky. It serves as an effective edge location for content delivery, IoT data processing, and application delivery to consumers and businesses throughout the Ohio Valley region.
Tax Advantage For Data Centers Indiana provides a significant tax advantage for data center operators and tenants. The state offers a sales and use tax exemption on the purchase of qualifying data center equipment and energy consumption. This incentive substantially reduces the initial capital cost of building out a footprint and lowers ongoing power-related operating expenses.
Natural Disaster Risk
Columbus has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 35.35, as of September 2025. The location is insulated from seismic, hurricane, and wildfire threats that affect other US regions, making it a stable location for critical infrastructure.
The primary environmental risks are atmospheric and include:
- Tornado
- Strong Wind
- Hail
- Winter Weather
- Lightning
- Heat & Cold Waves
