Data Centers in Evansville
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Evansville, Indiana – Stable & Cost-Effective Edge
Executive Summary
Evansville provides a compelling colocation market for businesses prioritizing operational stability and cost control. Its strategic location in the lower Midwest offers a low-risk environment with favorable tax incentives, making it an excellent choice for disaster recovery, secondary compute sites, and edge workloads serving regional populations. This market ensures uptime and reduces total cost of ownership for critical infrastructure.
Evansville, Indiana: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity; lacks the density of a primary national hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via major hubs like Indianapolis or Nashville through private network extensions. |
| Power Cost | $0.07 – $0.09/kWh | Industrial electricity prices are competitive for the region, as of September 2025. |
| Disaster Risk | Moderate (35.35 Score) | Low overall risk profile with manageable, well-understood seasonal weather threats, as of September 2025. |
| Tax Incentives | Yes | State-level sales and use tax exemptions on qualified data center equipment and energy. |
| Sales Tax | 7.00% (Indiana) | A statewide sales tax applies, with specific data center exemptions available, as of September 2025. |
Network & Connectivity Ecosystem
Evansville is a secondary market with reliable, though not top-tier, connectivity. It serves its purpose well for regional and edge deployments that don't require the massive carrier density of a market like Chicago.
Carrier Density & Carrier Neutrality The market is served by over 3 providers, as of September 2025. While you won't find hundreds of carriers, multiple regional and national fiber providers offer resilient connectivity options within carrier-neutral facilities.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Evansville, as of September 2025. Businesses connect to cloud providers by establishing private network connections (PNI or wave) to major hubs such as Indianapolis, Nashville, or St. Louis to reach AWS, Google Cloud, and Microsoft Azure.
Internet Exchange Points (IXPs) Public peering is not a feature of the Evansville market. Interconnection is handled privately between carriers and customers inside the local data centers or routed through larger exchange points in nearby metropolitan areas.
Bare Metal Bare metal server options are available, typically through providers that service edge locations. Companies like Hivelocity or ColoCrossing can offer dedicated server solutions in regional markets.
Power Analysis
Indiana's power infrastructure is built on a foundation of traditional energy sources, providing a reliable and cost-effective supply for industrial users.
Average Cost Of Power Expect industrial power rates in the range of $0.07 to $0.09 per kWh, as of September 2025. This competitive pricing can significantly lower operational expenses compared to larger, more expensive coastal markets. The grid mix is primarily coal and natural gas, with a growing renewables portfolio.
Power Grid Reliability The power grid supporting the region is well-engineered for industrial needs. Data centers in the area are typically fed by redundant power grids and have access to multiple substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Evansville offers a business-friendly environment with direct access to key industries in the tri-state area of Indiana, Kentucky, and Illinois.
Proximity To Key Business Districts Local data centers support the region's strong manufacturing, logistics, and healthcare sectors. Low-latency connections are vital for these industries' supply chain management and data processing needs.
Regional Market Reach From Evansville, an organization can effectively serve a significant population across the lower Midwest. It provides a strategic geographic position for disaster recovery sites for businesses located in St. Louis, Indianapolis, Nashville, and Louisville.
Tax Advantage For Data Centers Indiana provides a significant sales and use tax exemption for qualifying data center equipment and energy consumption. This tax relief directly reduces both initial capital investment and ongoing operational costs for operators.
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 primary risks are weather-related and seismic, but the overall threat level is significantly lower than in coastal or plains regions.
Key environmental risks include:
- Tornado
- Earthquake
- Severe Winter Weather
- Strong Wind & Hail
- Heat & Cold Waves
- Drought
