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Data Centers in Indianapolis

18 locations found

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Indianapolis – Midwest Hub for Low-Latency Delivery

Executive Summary

Indianapolis is a compelling Tier 2 data center market for businesses that require low-latency connectivity to the Midwest and Eastern United States without the higher costs of Chicago. Its strong network infrastructure, low environmental risk profile, and significant tax incentives make it an excellent location for production workloads and disaster recovery sites. This market provides a stable, cost-effective platform for securing and delivering digital services.

Indianapolis: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent carrier diversity and fiber infrastructure for a Tier 2 market.
Direct Cloud On-Ramps0 – as of September 2025Nearest major cloud hubs are in Chicago; access via private network extensions.
Power Cost$0.07 – $0.09/kWhGrid is primarily coal and natural gas; below national average industrial rates.
Disaster RiskModerate (Score: 35.35)Low exposure to major national disasters like hurricanes or widespread wildfires.
Tax IncentivesYesState provides a sales and use tax exemption on qualifying DC equipment/energy.
Sales Tax7.00% – as of Midyear 2025Indiana state sales tax.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Indianapolis is served by over 14 unique network carriers, as of September 2025. This provides healthy competition and resilient connectivity options within the area's numerous carrier-neutral data centers.

Direct Cloud On-Ramps: The market has 0 direct public cloud on-ramps, as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, through dedicated network links to the primary interconnection hub in Chicago.

Internet Exchange Points (IXPs): The local Midwest IX facilitates efficient traffic exchange between networks, keeping local traffic local and reducing latency for regional users. For broader peering, most providers connect directly in Chicago.

Bare Metal: Bare metal server solutions are readily available from providers in the Indianapolis market. Options from providers like ColoCrossing give businesses access to dedicated, high-performance computing without capital investment.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Indianapolis typically range from $0.07 to $0.09/kWh, as of September 2025. These competitive power costs translate directly into lower operational expenses for high-density compute and storage environments. The state's power mix is heavily weighted towards coal and natural gas, with a smaller but growing renewables portfolio.

Power Grid Reliability: The power grid serving the primary data center zones is reliable and well-maintained. Facilities in the region are supported by redundant power feeds from separate substations, ensuring high levels of uptime for mission-critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Indianapolis offer low-latency connections to the city's central business district, a major logistics and distribution sector, and a growing technology and life sciences corridor. This proximity is ideal for supporting local enterprise and time-sensitive supply chain operations.

Regional Market Reach: Strategically located, Indianapolis can effectively serve a vast portion of the United States population with minimal latency. It is an ideal hub for content delivery, application hosting, and disaster recovery for companies operating in Chicago, Columbus, Cincinnati, and St. Louis.

Tax Advantage For Data Centers: Indiana offers a significant financial benefit through a sales and use tax exemption for qualifying data center investments. This incentive covers computer equipment, electrical systems, and software, which substantially lowers the initial capital cost of a deployment.

Natural Disaster Risk

Indianapolis 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 location is not exposed to hurricanes, widespread wildfires, or major coastal events.

The primary environmental risks to consider are tornados, strong winds, winter weather, and hail. The region also has some earthquake risk due to its proximity to the New Madrid Seismic Zone, though significant events are infrequent.

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