Data Centers in South Bend

South Bend – Midwest Hub for Resilient Infrastructure

South Bend presents a compelling, low-risk option for organizations needing a reliable Midwest presence without the high costs of primary markets. It is an ideal location for secondary disaster recovery sites and latency-tolerant workloads that benefit from favorable tax incentives and a stable operating environment.

South Bend: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: South Bend is served by 6 providers, as of September 2025. The market offers access to regional and national carriers, providing sufficient diversity for most enterprise and disaster recovery needs, primarily through carrier-neutral facilities.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within South Bend, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via the primary interconnection hub in Chicago, accessible through dedicated private network links.

Internet Exchange Points (IXPs): The region relies on private peering or connects to the rich ecosystem of IXPs in nearby Chicago. This provides efficient traffic exchange with a vast number of networks, although it adds a layer of network latency compared to a direct presence.

Bare Metal: Bare metal server options are available in the region, often provisioned from providers located in larger Midwest hubs like Chicago. These services offer dedicated compute capacity for performance-sensitive applications.

Power Analysis

Average Cost Of Power: Industrial electricity rates in the South Bend area typically range from $0.08 to $0.10 per kWh, as of September 2025. These competitive power costs can significantly lower operational expenditures for compute-heavy deployments compared to more expensive coastal markets.

Power Grid Reliability: The power grid supporting the region is well-engineered for industrial use. Data centers in the area are supplied by reliable utility infrastructure, with facilities typically offering redundant connections to multiple substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in South Bend serve the local enterprise, education (University of Notre Dame), and manufacturing sectors. Its strategic location provides a viable alternative to the higher-cost Chicago market, approximately 95 miles away.

Regional Market Reach: South Bend provides effective, low-latency connectivity to a large population across Indiana, Michigan, Ohio, and Illinois. It is a strong location for content delivery and application hosting aimed at consumers and businesses throughout the Great Lakes region.

Tax Advantage For Data Centers: Indiana offers a significant 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 costs, making the state financially attractive for new builds and major expansions.

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 primary environmental threats are related to severe weather events common to the Midwest. Key risks include severe wind, tornado, winter weather, hail, and lightning. The area has a very low risk for seismic activity and is not exposed to hurricane or coastal flooding events.