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Data Centers in Indianapolis

17 locations found

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Indianapolis – Midwest Colocation & Disaster Recovery Hub

Indianapolis is a primary data center market for businesses requiring low-latency connectivity to the American Midwest. Its strategic location, favorable tax climate, and low risk of natural disasters make it an excellent choice for production workloads and business continuity, safeguarding digital assets and reducing operational costs.

Indianapolis: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAStrong carrier diversity ensures reliable network performance and uptime.
Direct Cloud On-Ramps0 – as of September 2025Access is via network extension to Chicago.
Power Cost$0.07 - $0.09/kWhRates are competitive for the region, supporting cost-effective operations.
Disaster RiskModerate (35.35) – as of September 2025The area has very low exposure to major catastrophic events.
Tax IncentivesYesIncludes sales and use tax exemptions on equipment and energy.
Sales Tax7.00% – as of September 2025Indiana state sales tax.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Indianapolis is a well-connected market with over 14 network carriers operating within its 17 data centers, as of September 2025. The market offers a healthy mix of carrier-neutral facilities, providing customers with redundant, high-performance connectivity options.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Indianapolis, as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, through dedicated network extensions to the primary interconnection hub in Chicago.

Internet Exchange Points (IXPs): Public peering is limited in Indianapolis. Most network peering occurs privately between carriers within local data centers or is routed through major exchange points in Chicago.

Bare Metal: Bare metal server capacity is readily available from multiple providers in the Indianapolis market. Options from providers like Hivelocity and ColoCrossing allow businesses to deploy dedicated compute without capital expenditure.

Power Analysis

Average Cost Of Power: Industrial electricity rates in the Indianapolis area typically range from $0.07 to $0.09/kWh, as of September 2025. These competitive power costs make the market financially attractive for compute-intensive workloads. The state's power mix is primarily generated from coal and natural gas.

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

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Indianapolis are strategically located to support the city's core industries, including logistics, life sciences, and advanced manufacturing. Their central location provides low-latency connectivity to commercial operations throughout the metropolitan area.

Regional Market Reach: Indianapolis serves as an effective hub for reaching consumer and business markets across the Midwest. Its central U.S. location offers a strong platform for disaster recovery and content delivery for companies based in Chicago, Cincinnati, and St. Louis.

Tax Advantage For Data Centers: Indiana provides a significant financial advantage through its data center tax exemption program. This incentive eliminates the state's 7% sales and use tax on qualifying data center equipment and electricity purchases, directly reducing both initial capital investment and ongoing operational expenses.

Natural Disaster Risk

Indianapolis has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 35.35, as of September 2025. The location avoids catastrophic risks like hurricanes, coastal flooding, and major earthquakes, making it a secure site for data center operations.

The primary environmental risks to consider are tornados, severe wind, hail, and winter weather. Other notable risks include drought, heatwaves, and lightning. Data centers in the region are purpose-built to mitigate these specific threats.

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