Data Centers in Evansville
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Evansville, Indiana – Low-Risk Midwest Connectivity Hub
Evansville provides a cost-effective and low-risk location for workloads serving the tri-state region of Indiana, Kentucky, and Illinois. The market is best suited for disaster recovery sites or secondary deployments that benefit from attractive tax incentives and stable power, ensuring operational resilience and lower total cost of ownership.
Evansville, Indiana: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for a market of its size; suitable for regional applications. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Nashville or Indianapolis; private network extensions are available. |
| Power Cost | $0.07 – $0.09/kWh (est.) | Coal-heavy mix contributes to competitive and stable industrial power pricing. |
| Disaster Risk | Moderate (35.35) | Low overall score with primary risks from severe storms, not coastal events. |
| Tax Incentives | Yes | State-level sales and use tax exemptions on qualifying data center equipment and energy. |
| Sales Tax | 7.00% – Indiana | Tax incentives can offset this for qualifying data center investments. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Evansville provides access to at least 3 carriers, as of September 2025, offering a mix of regional and national network services. The primary data center in the market operates on a carrier-neutral basis, allowing for choice and resiliency.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Evansville, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through network providers with points-of-presence in nearby hubs such as Indianapolis or Nashville. Private network connections can be established to ensure low-latency performance.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately or routed through larger IXPs in Indianapolis or Chicago, which serve as the primary peering points for the region.
Bare Metal: Bare metal server options are available in the region, typically sourced through providers with national footprints. Services from companies like Hivelocity can provide dedicated compute resources that connect into the local ecosystem.
Power Analysis
Average Cost Of Power: Expect industrial power costs to range between $0.07 and $0.09 per kWh, as of September 2025. This competitive pricing is driven by Indiana's power grid, which relies heavily on coal (~65%) and natural gas (~21%). These stable rates offer a significant operational cost advantage for compute-heavy workloads.
Power Grid Reliability: The power grid supporting the Evansville area is well-engineered for industrial use. Data centers in the market are typically supplied by redundant power feeds from separate substations, ensuring high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Evansville are positioned to serve the city's core industries, including manufacturing, healthcare, and logistics. The location provides low-latency connectivity to businesses throughout the tri-state area of Southern Indiana, Western Kentucky, and Southern Illinois.
Regional Market Reach: Evansville is a practical hub for reaching a secondary Midwest market often overlooked by deployments in Chicago or Indianapolis. It effectively serves as a distribution point for content and applications targeting consumers and businesses within a 150-mile radius.
Tax Advantage For Data Centers: Indiana offers a significant sales and use tax exemption for qualifying data center investments. This incentive covers computer equipment, cooling systems, power infrastructure, and the electricity used to operate it all, directly reducing both initial capital costs and ongoing operational expenses.
Natural Disaster Risk
Evansville 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 market is not exposed to coastal or hurricane-related threats. The primary risks are atmospheric and geological, including tornadoes, earthquakes from the nearby New Madrid Seismic Zone, strong winds, and winter weather.
