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    Indianapolis Data Centers: The Benefits of Colocating in the Capital City

    Indianapolis colocation centers provide critical support to businesses that require a lot of data processing. As the capital of Indiana, the city offers supportive economic policies, a robust data center industry, and plentiful network connectivity.

    In this article, Brightlio explores four compelling reasons why partnering with Indianapolis colocation facilities is a great business decision.

    Indianapolis Data Centers Have Access to Reliable and Affordable Electricity

    Affordable power in Indianapolis offers significant advantages to businesses seeking colocation services. The reasonable energy costs in the region contribute to the overall reduction in operational expenses for data centers, allowing these facilities to offer competitive rates to their clients. This economic advantage makes Indianapolis attractive for businesses wanting to leverage affordable colocation space. 

    The city’s average electricity cost is 16 ¢/kilowatt-hour (kWh), which is 16% lower than the national average. This affordable power rate makes Indianapolis a magnet for data center providers and colocation facilities.

    The city’s primary electricity provider is AES Indiana. This utility company runs many support programs allowing data centers to provide adequate customer support. 

    For example:

    • AES provides prescriptive rebates. These rebates allow Indianapolis data centers to get cash back on any energy-efficient equipment they purchase.
    • Data centers in Indianapolis can access numerous custom incentives and earn up to $1 million on new construction projects.
    • The company also provides midstream incentives that allow data centers access to instant discounts for qualifying equipment.
    • AES provides personalized insights and dedicated consultants to help data centers save energy, resources, and time.

    Furthermore, the city has a dedicated website to help businesses and data centers calculate and manage their electricity-related expenses. 

    Lower power costs and data center incentive programs enable data centers in Indianapolis to invest more in advanced infrastructure, security, cloud computing and support systems, which in turn enhances the reliability and performance of the services they offer. Consequently, businesses can enjoy high-quality colocation services without a hefty price tag, fostering their growth and digital transformation efforts.

    Renewable Energy Efforts

    The renewable energy initiatives in Indianapolis make the area attractive for businesses seeking colocation services. By investing in renewable energy sources such as wind and solar power, the city is committed to sustainable practices that align with the growing corporate emphasis on environmental responsibility. 

    For data centers, renewable energy reduces operational costs and decreases the carbon footprint, a significant factor for businesses mindful of their environmental impact. Furthermore, using renewable energy resources contributes to the stability and reliability of the power supply, a critical aspect for data centers, reducing the risk of outages. 

    Indianapolis has several dedicated programs that support the growth of alternative energy in the region. Let’s explore a few:

    • The city has over 3,000 megawatts of installed wind capacity and over 473 megawatts of installed solar capacity, making it easy for data centers to purchase renewable energy.
    • Indianapolis’s Clean Peak Standard utility policy aims to grow the share of clean energy used to meet peak electricity demand. The goal is to provide consistent renewable energy while decreasing energy bills over the long term. 
    • The state of Indiana has a voluntary Clean Energy Portfolio Standard program that encourages businesses to pursue alternative energy sources. The policy states utility companies can qualify for different financial incentives if they match specific clean energy generation targets in their generation and supply chain. The goal is that, by the end of 2025, at least 10% of the total electricity from utility providers must match the energy requirement of its retail electric customers.

    Ultimately, Indiana data centers benefit from the state’s commitment to green power. Indianapolis’ focus on renewable energy offers businesses a sustainable, reliable, and cost-effective solution for their colocation needs, making it an ideal choice for eco-conscious enterprises.

    Colocation Facilities in the City Have Access to Low-Latency Internet Connectivity

    Indianapolis boasts robust network connectivity options, making it a prime location for businesses seeking colocation services. One significant connectivity asset in Indy is the Midwest Internet Exchange. Also called the Fiber Data Internet Exchange (FD-IX), the site allows providers to more optimally route traffic through peering. If your organization needs secure, private, direct access to cloud providers and other networks, proximity to FD-IX is an advantage. FD-IX’s capabilities include 200 Gbps of network capacity and 55 ASNs.

    Furthermore, the city is serviced by several telecommunications providers with significant fiber and internet networks. Companies like AT&T, CenturyLink, and Comcast have substantial infrastructure in the region, which provides businesses with diverse and redundant connectivity options. This multitude of providers means companies can choose a provider that best meets their requirements, including speed, cost, and reliability.

    In addition, Indianapolis is geographically well-positioned, within a single day’s drive of nearly half of the U.S. population. This centrality translates to lower latency for data transmission to a significant portion of the country, a crucial consideration for companies with nationwide operations.

    Indianapolis is a Great Disaster Recovery Location

    Indianapolis presents an excellent location for clients requiring colo services, particularly those in major markets nearby, like Chicago, looking for disaster recovery (DR) protection and offsite backup solutions. Being strategically located approximately 180 miles from Chicago, Indianapolis is geographically close enough for convenient accessibility yet sufficiently distant to avoid being affected by a single localized disaster, such as a severe storm or power outage, that could impact both locations simultaneously.

    In addition to Chicago, Indianapolis is an excellent DR site for other major cities in the Midwest. Cleveland, Columbus, Detroit, St. Louis, and Nashville are all growing tech hubs within 330 miles of Indianapolis.

    One of the main features of Indianapolis as a DR location is its relatively low-risk profile for natural disasters. Unlike coastal cities or those along major fault lines, Indianapolis does not face a high risk of hurricanes, earthquakes, or tsunamis. This geographic stability makes it a secure location for organizations to store critical data and IT infrastructure.

    The Region Has a Growing Data Center Market

    Currently, 14 data centers in Indianapolis provide colocation support to both local and foreign customers. Some of the popular data center providers in the region include: 

    Many of the data centers are located in downtown Indianapolis because the area serves as the central business district of the state. This strategic positioning allows data centers to connect with hundreds of businesses that require their services.

    Leading Indianapolis Colocation Options

    Below are a few of our favorite colocation providers in Indy. If you are looking for colocation pricing in Indianapolis, please contact Brightlio. We can get you data center options tailored to meet your needs and budget.

    US Signal

    US Signal’s Indianapolis data center is located in the heart of downtown. The facility is backed by US Signal’s 99.995% uptime SLA. It meets multiple compliance standards, including HIPAA and PCI.

    Why we like US Signal:

    • US Signal operates five data centers in the Midwest United States in Indiana, Michigan, Illinois, and Wisconsin. This makes them a great fit for a regional data center deployment or disaster recovery solution.
    • Great connectivity options, including US Signal’s wholly owned 9,500 mile private lit fiber rings.
    • Flexible configuration options, including 1U, half cabinets, full cabinets, and private cages.


    Databank operates two data centers in Indianapolis: IND1 and IND2. Both are located in downtown, and combine to offer almost 50,000 square feet of raised floor space.

    Why we like Databank:

    Brightlio Delivers Indianapolis Data Center Solutions!

    Brightlio helps organizations like yours find the right data center partner by providing competitive, free price quotes for data center and cloud services in Indianapolis and other markets. Our extensive network of global data center providers makes it easy to provide customized pricing that aligns with your company’s needs and budget.

    Furthermore, we provide additional technology services to help you build a comprehensive IT infrastructure. Some of our services include network connectivityIT advisory services, public cloud computing solutions, and unified communications.

    Reach out to the team today to get started! 

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