Data Centers in Indianapolis

Indianapolis – Midwest Hub for Reliability & Value

Indianapolis is an excellent market for enterprises that require a cost-effective, low-risk location for disaster recovery or primary production workloads serving the American Midwest. The market combines attractive tax incentives, low power costs, and a very low natural disaster risk profile, delivering high reliability without the expense of coastal hubs.

Indianapolis: At A Glance

Network & Connectivity Ecosystem

Indianapolis provides a solid foundation for network-dependent applications, with a growing ecosystem of providers. The market features 17 colocation facilities and access to over 14 network carriers as of September 2025.

Carrier Density & Carrier Neutrality With more than 14 carriers, the Indianapolis market offers healthy competition and diverse routing options. Businesses can connect with major national carriers and regional specialists in carrier-neutral facilities, preventing vendor lock-in and optimizing network performance and cost.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Indianapolis data centers as of September 2025. The primary access point for dedicated cloud interconnection is Chicago, where all major hyperscalers maintain network Points of Presence. Secure, high-speed connections to AWS, Google Cloud, and Microsoft Azure are typically achieved via private network interconnects or wave services from local carriers.

Internet Exchange Points (IXPs) The Midwest IX (MWIX) is the primary Internet Exchange in Indianapolis. Its presence allows local networks, content providers, and enterprises to exchange traffic directly, improving network performance and reducing latency for regional end-users.

Bare Metal Bare metal server options are available in Indianapolis, providing dedicated, high-performance computing resources. Providers such as Hivelocity offer bare metal solutions in the region, suitable for workloads that demand full control over the hardware stack.

Power Analysis

Indianapolis stands out for its affordable and reliable power, making it an attractive alternative to more expensive Tier 1 markets.

Average Cost Of Power Industrial electricity rates typically range from $0.07 to $0.09 per kWh as of September 2025. These competitive prices directly reduce operational expenses, leading to a significantly lower total cost of ownership for colocation and large-scale deployments. The state's power mix is primarily generated from coal and natural gas.

Power Grid Reliability The power grid serving the main data center zones in Indianapolis is well-engineered and stable. Major colocation facilities are supported by redundant power feeds from separate substations, ensuring high levels of uptime for mission-critical infrastructure.

Market Access, Business & Tax Climate

The business environment in Indiana is highly supportive of data center investment, driven by strategic location and favorable tax policies.

Proximity To Key Business Districts Data centers in Indianapolis are strategically located to serve the city's downtown business district, the growing technology sector, and extensive logistics and distribution operations. Its "Crossroads of America" location makes it a vital hub for commerce.

Regional Market Reach From Indianapolis, organizations can effectively serve a large portion of the Midwest with low latency. This includes major metropolitan areas like Chicago, Cincinnati, Columbus, Louisville, and St. Louis, reaching tens of millions of consumers within a few hours' drive or milliseconds of network travel time.

Tax Advantage For Data Centers Indiana provides a significant sales and use tax exemption on the purchase of qualifying data center equipment and power consumption. This incentive dramatically lowers the initial capital investment and reduces ongoing operational costs for tenants and operators.

Natural Disaster Risk

Indianapolis has a moderate natural disaster risk profile, making it a secure location for critical IT infrastructure. The FEMA National Risk Index score is 35.35 out of 100 as of September 2025.

The location is insulated from coastal threats like hurricanes and tsunamis. The primary environmental risks to consider are seasonal weather events, including tornados, strong winds, winter weather, and hail. The region also has some exposure to earthquakes due to its proximity to the New Madrid Seismic Zone.