Bengaluru Data Center Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2018 - 2022 |
| CAGR (2024 - 2030) | 11.43 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Bengaluru Data Center Market Analysis
The Bengaluru Data Center Market size in terms of installed base is expected to grow from 205.64 megawatt in 2024 to 414.63 megawatt by 2030, at a CAGR of 11.43% during the forecast period (2024-2030).
- A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.
- The metropolis's enormous and steadily expanding IT and technology-startup ecosystems will increase demand. Banglore will continue to be favored for its emergence as one of the future centers of the Indian data center industry due to IT expertise, attractive geographic locations with low risk of seismic activity and other natural disasters, and excellent domestic and international connectivity.
- Data Centres have recently assumed a more significant position in enterprises due to the expanding relevance of intelligent technologies, IoT-powered devices, Big Data, Industry 4.0, 5G, and cloud computing. The COVID-19 outbreak's increased data consumption patterns have highlighted this new market's growth potential.
- Furthermore, the robust growth of Karnataka's growing technology system, home of over 5500+ IT/ information technology-enabled services (ITES) companies, in the era of Virtualization and cloud computing, would add to the growing demand for data centers.
- One of the significant challenges that data center operators confront in Bangaluru is the rising cost of land acquisition, which raises the initial expenditure required to set up a data center. Because most existing availability zones are in formerly industrial areas rapidly becoming mainstream, alternatives are limited, and land costs are rising. Furthermore, land titles in the region frequently need to be clarified. This has become a problem for data center operators.
- Furthermore, the COVID-19 outbreak significantly influenced the country, hurting local data center service providers. Furthermore, due to the country's extensive travel ban, many organizations resorted to working from home, dramatically increasing data traffic and putting pressure on the data center's capabilities to prevent downtime.
Bengaluru Data Center Market Trends
Government policies would advance the Investment of Data Centre
- The capacity of data centers is anticipated to reach about 1650 MW in 2025 thanks to favorable central and state government initiatives, the move to cloud infrastructure, growing digitization across industries, the rollout of 5G services, the growth of hyperscale data centers, and increased investment in data centers. Major cities like Mumbai, Hyderabad, Chennai, Noida, Bengaluru, and Kolkata, among others, would be responsible for a sizable rise in capacity. Additionally, in the upcoming years, a wide variety of new data center operators will transform the Indian data center landscape by offering innovative concepts and scalability across cities.
- The need for cloud-based solutions has grown nationwide because of increased technology usage and consumer desire for the cloud, which allows access to data from remote locations. As more organizations recognize the value of saving money and resources by transferring data to the cloud rather than constructing and maintaining on-premise infrastructure, the demand for cloud-based solutions and, as a result, the adoption of cloud-based data centers across the country has surged.
- In addition, Karnataka is projected to become a premier data center destination in India and take the lead as one of the leading digital economies in the nation, supported by its most recent dedicated data center (DC) strategy. In the coming years, the rapid expansion of cloud providers will lead to DC capacity requirements, generating a need for hyper-scale DCs in Bangalore, which the state government will support in tax exemptions and rebates.
- Given its current solid digital infrastructure, integrated favorable policy framework, and civil infrastructure, Karnataka is expected to become the most attractive state for setting up DCs as the sector grows. The DC policy intends to increase the current capacity to 200 MW by 2025 and targets investments worth USD 1.21 Billion.
- Several state governments, including those in Karnataka, have established their plans to encourage the establishment of data centers through cost and power subsidies, stamp duty exemptions, discounts on renewable energy sources, and local IT component purchases.
Increased Migration to Cloud & IT based Business Operations
- With an investment of USD 716 Million, the Karnataka government intends to establish a cloud-based state data center for various departments and PSUs. A 24-7 cyber security operation center with cyber professionals utilizing new technology would be developed to safeguard the security of government websites' online services and data.
- In February 2022, AWS planned to establish four new mini-data centers in Bengaluru, Chennai, Delhi, and Kolkata. For those clients who want almost zero latency for their applications, these local zones, constructed in highly populated locations, will offer cloud services. This data center provider offers various services and supplies server infrastructure, including managed databases, content delivery networks, and cloud services. Users of the platform benefit from the highest levels of uptime, security, scalability, AI, and machine learning.
- The pandemic has raised the demand for cloud services, necessitating a continuous data backup, and digital transformation is speeding up across all businesses. The shift to the cloud has led to increased investment in hyperscale data centers. The need for data centers has grown significantly in direct proportion to data consumption and cloud usage development.
- Regarding cloud services' scalability, business organizations have varying needs. Businesses that are expanding prepare for the possibility of scaling when necessary. Privately owned servers may experience this issue. However, providers of data centers in Bangalore have made technological investments that give their clients the best possible services. When a company has access to scalable cloud services, it may compete successfully without being concerned about the declining returns that come with expansion. The data center provider ensures enough resources to handle increased resource demand. The scalability choices of data center services drive demand for data centers in Bangalore.
Bengaluru Data Center Industry Overview
The Bengaluru data center market is fragmented in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some players include Reliance Industries, Nextra Data Limited, CtrlS, STT Telemedia, and Sify Technologies.
- In September 2022, Power Grid Corporation India Ltd and Tele India Datacenter, also known as "Datasamudra," India's first On-demand and On-requirement datacenter based in Bangalore, offering globally aligned colocation, hosting & cloud services, signed a Memorandum of Understanding to combine their resources to improve user experience.
- In March 2022, Tulip Telecom revealed the third-biggest data center in the world and the largest in Asia. The commercial opening of Tulip Data City (TDC), a Bengaluru data center, was announced by Tulip Data Centre Services (Tulip), a provider of enterprise data services. The TDC was constructed to tier 4 and tier 3 standards. The facility, the most "green" and energy-efficient data center in India, is predicted to save up to 35 MW of power while operating at total capacity. The business collaborated with companies including IBM, HP, Cisco, EMC, Schneider Electric, Emerson, Panduit, and Corning to create the facility. It occupies 0.9 million square feet. Up to 12,000 racks can be housed in this facility, generating up to 100 MW of power.
Bengaluru Data Center Market Leaders
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Sify Technologies Limited
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STT Telemedia Global Data Centres
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CtrlS
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Reliance Industries
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Nxtra Data Limited
*Disclaimer: Major Players sorted in no particular order
Bengaluru Data Center Market News
- March 2023 - The Web Werks and Iron Mountain Data Centres Joint Venture (IMDC) announced opening their first data center on their Bengaluru, India, campus in March 2023. The data center is ideally situated as a gateway to Southern India because it is located in the prestigious Whitefield neighborhood of Bengaluru. The BLR-1 is a Tier III data center with 80,000 square feet of space that can accommodate up to 4MW of IT load.
- April 2022 - Web Werks and Teleindia Networks invested around USD 95.8 million and 12.8 million to set up their data center units in Banglore.
Bengaluru Data Center Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
- 4.1 Smartphone Users
- 4.2 Data Traffic per Smartphone
- 4.3 Mobile Data Speed
- 4.4 Broadband Data Speed
- 4.5 Regulatory Framework
- 4.6 Value Chain Analysis
5. MARKET OUTLOOK
- 5.1 IT Load Capacity
- 5.2 Raised Floor Space
- 5.3 Number of Racks
6. MARKET SEGMENTATION
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6.1 By DC Size
- 6.1.1 Small
- 6.1.2 Medium
- 6.1.3 Large
- 6.1.4 Massive
- 6.1.5 Mega
-
6.2 By Tier Type
- 6.2.1 Tier 1 & 2
- 6.2.2 Tier 3
- 6.2.3 Tier 4
-
6.3 By Absorption
- 6.3.1 Utilized
- 6.3.1.1 By Colocation Type
- 6.3.1.1.1 Retail
- 6.3.1.1.2 Wholescale
- 6.3.1.1.3 Hyperscale
- 6.3.1.2 By End User
- 6.3.1.2.1 Cloud & IT
- 6.3.1.2.2 Telecom
- 6.3.1.2.3 Media & Entertainment
- 6.3.1.2.4 Government
- 6.3.1.2.5 BFSI
- 6.3.1.2.6 Manufacturing
- 6.3.1.2.7 E-Commerce
- 6.3.1.2.8 Other End Users
- 6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
-
7.1 Company Profiles
- 7.1.1 Sify Technologies Limited
- 7.1.2 STT Telemedia
- 7.1.3 Reliance industries
- 7.1.4 CtrlS
- 7.1.5 Nxtra Data Limited
- 7.1.6 NTT Data
- 7.1.7 ESDS Software Solutions Company
- 7.1.8 Renaissance Technologies
- 7.1.9 Tulip Data Center Services Private Limited
- *List Not Exhaustive
- 7.2 Market share analysis (In terms of MW)
- 7.3 List of Companies
Bengaluru Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with them.
The Bengaluru data center market is segmented by DC size (small, medium, large, massive, mega), by tier type (tier 1&2, tier 3, tier 4), by absorption (utilized (colocation type (retail, wholescale, hyperscale), end user (cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce, and other end-users)), non-utilized).
The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
| By DC Size | Small | ||
| Medium | |||
| Large | |||
| Massive | |||
| Mega | |||
| By Tier Type | Tier 1 & 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| By Absorption | Utilized | By Colocation Type | Retail |
| Wholescale | |||
| Hyperscale | |||
| By Absorption | Utilized | By End User | Cloud & IT |
| Telecom | |||
| Media & Entertainment | |||
| Government | |||
| BFSI | |||
| Manufacturing | |||
| E-Commerce | |||
| Other End Users | |||
| By Absorption | Non-Utilized |
Bengaluru Data Center Market Research Faqs
How big is the Bengaluru Data Center Market?
The Bengaluru Data Center Market size is expected to reach 205.64 megawatt in 2024 and grow at a CAGR of 11.43% to reach 414.63 megawatt by 2030.
What is the current Bengaluru Data Center Market size?
In 2024, the Bengaluru Data Center Market size is expected to reach 205.64 megawatt.
Who are the key players in Bengaluru Data Center Market?
Sify Technologies Limited, STT Telemedia Global Data Centres, CtrlS, Reliance Industries and Nxtra Data Limited are the major companies operating in the Bengaluru Data Center Market.
What years does this Bengaluru Data Center Market cover, and what was the market size in 2023?
In 2023, the Bengaluru Data Center Market size was estimated at 184.55 megawatt. The report covers the Bengaluru Data Center Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Bengaluru Data Center Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Bengaluru Data Center Industry Report
Statistics for the 2024 Bengaluru Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Bengaluru Data Center analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
