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Data Centers in South Bend

6 locations found

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South Bend, Indiana, USA – Resilient Midwest Colocation

South Bend is a compelling secondary market for businesses requiring cost-effective colocation and a strategic disaster recovery location for Chicago workloads. Its low natural disaster risk profile and significant tax incentives create a stable operating environment, ensuring uptime and reducing total cost of ownership for critical IT infrastructure.

South Bend, Indiana, USA: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid connectivity for a market of this size, with multiple fiber providers.
Direct Cloud On-Ramps0 – as of September 2025Cloud access is via network extension to the nearest major hub in Chicago.
Power Cost$0.07 – $0.09/kWhBased on Indiana's competitive industrial rates and a coal-heavy grid mix.
Disaster RiskModerate (35.35 Score) – as of September 2025Very low overall risk score from FEMA, with no single dominant threat.
Tax IncentivesYesState-level sales and use tax exemptions on qualifying data center equipment and energy.
Sales Tax7.00% – as of September 2025Indiana state sales tax.

Network & Connectivity Ecosystem

South Bend provides reliable, foundational connectivity suitable for enterprise and disaster recovery applications, with primary access to cloud and peering services through Chicago.

Carrier Density & Carrier Neutrality The market features 6 unique network providers across 6 data centers, as of September 2025. This provides sufficient carrier diversity for most enterprise resiliency and backup requirements.

Direct Cloud On-Ramps There are no direct cloud on-ramps within South Bend as of September 2025. Secure, low-latency connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are achieved via dedicated network links to the primary interconnection hub in Chicago.

Internet Exchange Points (IXPs) Public peering is not a focus of the South Bend market. Most network interconnection is handled through private peering arrangements or by routing traffic through major exchange points in Chicago.

Bare Metal Bare metal server options are available from providers in the region, offering dedicated compute for performance-sensitive workloads. Providers like ColoCrossing can serve customers from nearby facilities.

Power Analysis

Indiana’s power landscape offers cost advantages and a grid built to support industrial operations.

Average Cost Of Power Industrial electricity rates are estimated between $0.07 and $0.09/kWh, as of September 2025. These competitive rates can significantly lower operational expenses compared to larger, primary markets. The state's energy is primarily generated from coal (~65%) and natural gas (~21%).

Power Grid Reliability The power grid supporting the South Bend area is well-engineered and reliable, designed to meet the demands of the region's industrial and manufacturing base. Local data centers are typically supported by redundant power feeds from separate substations.

Market Access, Business & Tax Climate

South Bend offers a favorable business environment, combining strategic location with compelling financial incentives.

Proximity To Key Business Districts Data centers in South Bend serve the University of Notre Dame, regional healthcare systems, and a diverse manufacturing and logistics sector. The market is well-positioned to support local enterprise and academic research computing.

Regional Market Reach South Bend provides effective, low-latency coverage for Northern Indiana and Southwestern Michigan. It is an excellent disaster recovery site for primary operations in Chicago, located approximately 100 miles away.

Tax Advantage For Data Centers Indiana offers a significant financial benefit through its data center-specific tax incentives. The sales and use tax exemption on qualifying equipment, software, and energy directly reduces both the initial capital investment and ongoing operational costs.

Natural Disaster Risk

South Bend has a moderate natural disaster risk profile, making it a secure location for critical infrastructure.

The region has a FEMA National Risk Index score of 35.35, categorized as very low relative to the rest of the United States as of September 2025. The primary environmental risks are atmospheric, including tornadoes, strong winds, hail, and winter weather. The risks of drought and earthquake are present but rated as minor factors.

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