India Data Center Market Size

The India Data Center Market is experiencing significant growth, driven by the increasing adoption of smart technologies and favorable state government incentives. This expansion is particularly evident in the development of tier 3 and tier 4 data centers, which are becoming increasingly popular among large businesses due to their enhanced features such as lower downtime and improved disaster recovery options. While tier 1 and tier 2 data centers are expected to stagnate due to low demand, the market's overall capacity is set to expand substantially over the forecast period.

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Market Size of india data center Industry

India Data Center Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Volume (2024) 2.01 Thousand MW
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Volume (2029) 4.77 Thousand MW
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Tier Type Tier 3
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2029) 18.79 %
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Fastest Growing by Tier Type Tier 4

Major Players

India Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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India Data Center Market Analysis

The India Data Center Market size is estimated at 2.01 thousand MW in 2024, and is expected to reach 4.77 thousand MW by 2029, growing at a CAGR of 18.79%. Further, the market is expected to generate colocation revenue of USD 1,926.1 Million in 2024 and is projected to reach USD 4,597.3 Million by 2029, growing at a CAGR of 19.00% during the forecast period (2024-2029).

USD 1,926.11 Million

Market Size in 2024

USD 4,597.3 Million

Market Size in 2029

14.1%

CAGR (2017-2023)

19%

CAGR (2024-2029)

IT Load Capacity

2,014.5 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the Indian data center market may grow steadily and reach 4765.2 MW by 2029. Mumbai is poised to remain a major attraction to DC operators, including Sify, Equinix, NXTRA, Colt, and NTT Ltd.

Total Raised Floor Space

Sq. Ft. 6.01 M

Volume, Raised Floor Space, 2024

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Adoption of smart technologies by urban population and attractive incentives offered by state governments has led data center operators setting up huge data processing facilities in the country.

Installed Racks

300,582

Volume, Installed Racks, 2024

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The country's total number of installed racks is expected to reach 710,993 units by 2029. Mumbai is expected to house the maximum number of racks by 2029.

# of DC Operators & DC Facilities

22 and 114

Volume, DC Facilities, 2024

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The data centers in the region are majorly tier 3 facilities with a gradual inclination toward tier 4 DC standards. This transformation will improve the DC performance and reduce the downtime of facilities.

Leading Market Player

22.3%

Market Share, STT GDC Pte Ltd, 2023

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STT Telemedia leads the Indian data center market with facilities across Bangalore, Chennai, Hyderabad, Kolkata, NCR, Ahmedabad, Mumbai, and Pune. The company is projected to expand its facilities across the country in the coming years.

Tier 3 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period

  • The growing urban population's adoption of smart technologies and attractive incentives offered by state governments has led data center operators setting up huge data processing facilities in the country.
  • As businesses evolve in India, large businesses increasingly focus on tier 3 and tier 4 data centers due to their lower downtime, disaster recovery, and onsite assistance facility. This has led to the growth of tier 3 and tier 4 data centers in the region.
  • Tier 3 data centers are expected to grow from 888.5 MW in 2022 to 3365.0 MW by 2029 at a CAGR of 16.20%. Similarly, tier 4 data centers operated at a capacity of 211.9 MW in 2021. This capacity is expected to increase from 211.9 MW in 2022 to 1380.2 MW by 2029 at a CAGR of 29.54%.
  • As a result of low demand, tier 1 & 2 data center is expected to stagnate during the forecast period.
India Data Center Market

India Data Center Industry Segmentation

Bangalore, Chennai, Hyderabad, Mumbai, NCR, Pune are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • The growing urban population's adoption of smart technologies and attractive incentives offered by state governments has led data center operators setting up huge data processing facilities in the country.
  • As businesses evolve in India, large businesses increasingly focus on tier 3 and tier 4 data centers due to their lower downtime, disaster recovery, and onsite assistance facility. This has led to the growth of tier 3 and tier 4 data centers in the region.
  • Tier 3 data centers are expected to grow from 888.5 MW in 2022 to 3365.0 MW by 2029 at a CAGR of 16.20%. Similarly, tier 4 data centers operated at a capacity of 211.9 MW in 2021. This capacity is expected to increase from 211.9 MW in 2022 to 1380.2 MW by 2029 at a CAGR of 29.54%.
  • As a result of low demand, tier 1 & 2 data center is expected to stagnate during the forecast period.
Hotspot
Bangalore
Chennai
Hyderabad
Mumbai
NCR
Pune
Rest of India
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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India Data Center Market Size Summary

The India Data Center Market is experiencing significant growth, driven by the increasing adoption of smart technologies and supportive government incentives. This expansion is largely attributed to the rising urban population and the evolving needs of businesses, which are increasingly focusing on tier 3 and tier 4 data centers due to their enhanced reliability and support features. The market is witnessing a shift towards these advanced data centers, while tier 1 and tier 2 facilities are expected to stagnate due to lower demand. The proliferation of smartphone users and the growth of telecom operators, such as Jio, have further fueled the demand for data centers, as they enable affordable internet access and digital services. The introduction of 5G technology is anticipated to further escalate data consumption, particularly with the growing popularity of online content, gaming, and smart home applications.

In terms of infrastructure, the transition from copper-based internet connections to fiber optic cables is enhancing data transfer speeds, supporting the increasing bandwidth demands of urban users. Initiatives like the BharatNet project are expanding broadband access across the country, connecting numerous Gramme Panchayats with optical fiber cables. The market is characterized by fragmentation, with major players like Equinix Inc., NTT Ltd, Nxtra Data Ltd, Sify Technologies Ltd, and STT GDC Pte Ltd holding significant shares. Recent developments include strategic partnerships and technological innovations aimed at enhancing data center capabilities and sustainability, such as the implementation of hydrogen fuel cells to reduce carbon emissions. These trends underscore the dynamic nature of the India Data Center Market, poised for continued growth and transformation.

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India Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Bangalore

      2. 1.1.2 Chennai

      3. 1.1.3 Hyderabad

      4. 1.1.4 Mumbai

      5. 1.1.5 NCR

      6. 1.1.6 Pune

      7. 1.1.7 Rest of India

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

India Data Center Market Size FAQs

The India Data Center Market is projected to register a CAGR of 18.79% during the forecast period (2024-2029).

Equinix Inc., NTT Ltd, Nxtra Data Ltd, Sify Technologies Ltd and STT GDC Pte Ltd are the major companies operating in the India Data Center Market.

India Data Center Market Report Snapshots

India Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029