Data Centers in South Bend

South Bend, Indiana, USA – Midwest Colocation Value

Executive Summary

South Bend provides a cost-effective and low-risk colocation alternative to the primary Chicago market. It is an ideal location for disaster recovery, secondary deployments, and latency-tolerant applications that benefit from Indiana's aggressive data center tax incentives. This market delivers stable power and a favorable business climate, ensuring resilient operations without the premium cost of a top-tier hub.

South Bend, Indiana, USA: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality South Bend has a focused carrier ecosystem with at least 6 providers active in the area as of September 2025. The market offers access to regional and national networks, though carrier density is significantly lower than in nearby Chicago. Most facilities provide carrier-neutral interconnection.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within South Bend as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via private network links to data centers in Chicago, which serves as the primary access hub for the region.

Internet Exchange Points (IXPs) Public peering is not a feature of the South Bend market. The majority of network peering is conducted privately between carriers or routed through major internet exchanges in Chicago to optimize traffic flow and reduce latency.

Bare Metal Bare metal server options are available in the region, primarily through providers located in nearby markets. Services from companies like Hivelocity can serve workloads requiring dedicated, high-performance computing resources.

Power Analysis

Average Cost Of Power Industrial electricity rates in the South Bend area are competitive, estimated between $0.08 and $0.10 per kWh as of September 2025. These favorable power costs can significantly lower the total cost of ownership for compute-intensive deployments. The state's power generation is heavily reliant on coal and natural gas.

Power Grid Reliability The power grid supporting Northern Indiana is well-engineered and reliable for commercial and industrial use. Data centers in the market are typically supplied by redundant power feeds from separate substations to ensure high levels of uptime for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts South Bend data centers serve local and regional enterprises, including the University of Notre Dame, as well as the manufacturing and healthcare sectors. Its strategic location offers a viable disaster recovery site for businesses operating out of Chicago, located just under 100 miles away.

Regional Market Reach From South Bend, organizations can effectively serve a large portion of the American Midwest. The market provides low-latency connectivity to major population centers including Chicago, Indianapolis, and Detroit, reaching millions of end-users.

Tax Advantage For Data Centers Indiana offers a significant financial benefit through a sales and use tax exemption on qualifying data center equipment and power consumption. This incentive directly reduces both the initial capital investment and ongoing operational expenses for data center operators and their tenants.

Natural Disaster Risk

South Bend 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 "Very Low" overall rating indicates the area is not prone to catastrophic events like earthquakes or hurricanes. Key environmental risks are primarily weather-related and include tornado, severe wind, winter weather, hail, and lightning.