Data Centers in Evansville
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Evansville – Low-Cost Regional Data Hub
Evansville presents a compelling case for companies requiring a secondary data center location or a primary site to serve the Indiana, Kentucky, and Illinois tri-state region. It combines a very low natural disaster risk profile with significant tax incentives, creating a cost-effective and resilient environment for colocation. This market is ideal for disaster recovery, content delivery, and enterprises seeking to reduce operational expenses without moving to a major metro.
Evansville: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid regional market, though not a primary international interconnection hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via private network extension (PNI/wave) to major hubs like Chicago. |
| Power Cost | $0.07 – $0.09/kWh | Power mix is heavily reliant on coal (~65%) and natural gas (~21%). |
| Disaster Risk | Moderate (35.35) – as of September 2025 | Low overall score from FEMA, with manageable risks like tornadoes and wind. |
| Tax Incentives | Yes | Sales and use tax exemption for qualifying data center equipment and energy. |
| Sales Tax | 7.00% (Indiana) – as of September 2025 | The state sales tax rate, which may be exempt for data center gear. |
Network & Connectivity Ecosystem
Evansville is a regional edge market, not a primary interconnection hub. Connectivity is sufficient for local and regional business needs but lacks the density of larger metros.
Carrier Density & Carrier Neutrality: Network access is concentrated, with around 3 providers in the market as of September 2025. This limited competition makes carrier-neutral facilities essential for flexibility.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Evansville. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated circuits to the nearest major hubs, primarily Chicago.
Internet Exchange Points (IXPs): Public peering is not available locally. Most network peering is handled privately or routed through IXPs in Chicago or Indianapolis to optimize traffic flow.
Bare Metal: Bare metal server options are available, typically deployed by national providers. Companies like ColoCrossing and Hivelocity can provision dedicated servers in regional markets like this one.
Power Analysis
Indiana's power landscape offers competitive pricing, though it relies heavily on traditional generation sources.
Average Cost Of Power: Expect industrial power rates between $0.07 and $0.09/kWh as of September 2025. This competitive pricing can significantly reduce operational costs for high-density computing workloads compared to coastal markets.
Power Grid Reliability: The regional power grid is well-engineered for industrial and commercial needs. Data centers in the area typically source power from redundant substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Evansville provides strategic access to the Midwestern United States with a business-friendly tax structure for data center operators.
Proximity To Key Business Districts: Data centers in Evansville serve the region's core industries, including manufacturing, logistics, and healthcare. Proximity enables low-latency support for these local enterprise operations.
Regional Market Reach: The market is positioned to effectively serve Southern Indiana, Western Kentucky, and Southern Illinois. It provides a valuable geographic diverse option from primary hubs like Chicago or Indianapolis.
Tax Advantage For Data Centers: Indiana provides a sales and use tax exemption on qualifying data center equipment and energy consumption. This state-level incentive directly lowers the capital expense of building or expanding a facility and reduces ongoing power-related operating costs.
Natural Disaster Risk
Evansville has a moderate risk profile for natural disasters, making it a stable location for critical infrastructure.
The region's FEMA National Risk Index score is 35.35, categorized as Moderate as of September 2025. The primary environmental threats are weather-related and seismic, including tornado, earthquake, strong wind, and winter weather. These risks are well-understood and are addressed through modern data center construction and operational planning.
