Report Overview

India Data Center Market – Industry Trends & Forecast Report, 2030

The India Data Center Market size was estimated at USD 4.37 billion in 2023. During the forecast period between 2024 and 2030, the India Data Center Market size is projected to grow at a CAGR of 7.18% reaching a value of USD 7.66 billion by 2030. Prominent drivers of the market are increasing internet penetration, growth in digital data traffic, rising public cloud services, and expanding internet of things (IoT). This persistent upward trend is fueled by the country's expanding digital infrastructure, driven by the increasing use of digital services and the need for data storage and processing capabilities. Additionally, proactive regulatory measures by the Indian government focusing on data localization, privacy, and security have further stimulated growth in the market. The influx of investment commitments, totaling approximately USD 35 billion between 2018 and 2023, from both global and domestic investors underscores the attractiveness of the Indian data center market. Moreover, with nearly 500 MW of data center capacity under construction across multiple cities in India, the data center segment is poised for continued accelerated growth during the forecast period.

Data Center – Overview

A data center is a facility used to house computer systems, servers, networking equipment, storage systems, and other related components for the purpose of collecting, storing, processing, and distributing large amounts of data and information. These facilities are equipped with infrastructure such as power supplies, cooling systems, fire suppression mechanisms, and security measures to ensure the reliable operation and protection of the equipment and data housed within them. Data centers are essential for supporting the operations of businesses, organizations, and governments by providing the necessary computing resources for applications, databases, websites, and other digital services. They come in various sizes and configurations, ranging from small server rooms to large-scale facilities spanning thousands of square meters, and can be operated by companies internally or outsourced to third-party service providers.

India Data Center Market

Growth Drivers

Growing Government Initiative

In fostering India's data center sector, government initiatives play a pivotal role. With a thriving digital economy and burgeoning internet accessibility, the government prioritizes stable infrastructure for uninterrupted internet access, data security, and cloud computing. Various incentives and regulatory frameworks have been introduced to encourage investments and ensure compliance. Noteworthy measures include the incorporation of data centers under essential services, the establishment of Data Centre Facilitation Units (DCFU), creation of Data Centre Economic Zones, and special categorization codes under national building regulations. Such initiatives aim to propel the growth of India's data center market, bolstering its position as a key player in the global digital landscape.

Burgeoning Digital India

The burgeoning growth of telecom giants such as Jio has democratized access to smartphones and internet services, catalyzing the expansion of the data center market. Moreover, initiatives like the "Make in India" movement have incentivized the local smartphone industry, resulting in the production of affordable yet technologically advanced devices. With the impending launch of the 5G network, India anticipates a surge in data consumption, fueled by a burgeoning appetite for online content and services. Concurrently, the transition from copper-based to fiber optic internet connections reflects India's commitment to enhancing digital infrastructure. As broadband connectivity proliferates, supported by initiatives like the BharatNet project, India's digital landscape evolves, paving the way for increased reliance on data centers to support this digital revolution.

Challenges

Volatile Availability of Electric Power

Power issues, including unreliable electricity supply and high costs, pose significant constraints to the growth of the India Data Center Market. Inadequate power infrastructure can lead to frequent outages, compromising the uninterrupted operation of data centers and potentially causing data loss or service disruptions. Additionally, the high costs associated with backup power solutions such as generators and uninterruptible power supply (UPS) systems further strain the financial viability of data center operations. Addressing these power challenges through investments in infrastructure and sustainable energy solutions is essential to unlock the full potential of India's data center market.

Impact of Escalating Geopolitical Tensions on India Data Center Market

Geopolitical tensions can have a multifaceted impact on the India Data Center Market, potentially leading to increased uncertainty and risk for investors and operators. Heightened geopolitical tensions may disrupt international trade and investment flows, impacting the availability of critical infrastructure components and technologies essential for data center operations. Moreover, geopolitical instability can exacerbate regulatory challenges and introduce geopolitical risk factors that influence decision-making processes for market participants. To mitigate these impacts, stakeholders may need to enhance risk management strategies, diversify supply chains, and prioritize investments in robust, resilient infrastructure to safeguard the continuity and security of India's data center market amidst geopolitical uncertainties.

India Data Center Market

Segmental Coverage

India Data Center Market – By Service Model

By service model, the India Data Center Market is bifurcated into Co-location and Managed Services segments. The co-location segment holds a higher share in the India Data Center Market by service model. Constructing a data center entails significant costs and lengthy approval processes, making renting from a colocation provider a quicker and more cost-effective option for businesses needing increased capacity swiftly. Notably, colocation facilities offer skilled management, ensuring efficient 24x7 operation, a challenge for many businesses operating with limited staffing. Also, adherence to stringent regulatory standards is simplified through colocation providers, who already possess industry-recognized certifications. Another driving factor is the colocation facilities typically exhibit more sustainable development practices compared to single extensive infrastructures, making them environmentally friendly choices. These factors collectively position colocation as the preferred choice for organizations seeking scalable, secure, and available resources without the hefty investment and management required for individual data centers.

India Data Center Market – By Tier Classification

Based on tier classification, the India Data Center Market is bifurcated into Tier 1, Tier 2, Tier 3, and Tier 4 segments. The tier 4 segment is expected to hold the highest share in the India Data Center Market by tier classification during the forecast period. It is primarily due to its unparalleled reliability and robustness. As an enterprise-class tier, Tier 4 data centers boast redundant and dual-powered instances of critical infrastructure components like servers, storage, and network links, ensuring 99.995% availability with minimal downtime. Notably, Tier 4 data centers offer fault-tolerant functionality, mitigating the impact of unplanned failures on critical operations. This level of resilience, coupled with multiple distribution paths, safeguards against disruptions, making Tier 4 data centers the preferred choice for corporations seeking the highest levels of reliability, security, and availability for their data infrastructure.

India Data Center Market – By Region

Geographically, the India Data Center Market is divided into North India, South India, East India, and West India regions. The West India region holds the highest share in the India Data Center Market and is expected to maintain its dominance throughout the forecast period. The preeminence stems from Mumbai's strategic significance as the nation's financial capital and a major commercial and transport hub. The city boasts robust infrastructure, including reliable power, extensive fiber connectivity, and critical cable landing stations, making it an ideal location for data centers. Notably, Mumbai's connectivity to global destinations – the Middle East, Europe, Africa, and Hong Kong – is facilitated by subsea cable landing stations. This ensures low-latency connections and dependable cross-border data transmission. Mumbai's data center boom is undeniable. The city houses nearly half of all data centers in India, attracting investments from leading national and international players. The city's surrounding areas, including Thane, Bhiwandi, and Navi Mumbai, have also experienced growth in this sector, fueled by favorable government policies and incentives promoting Mumbai and Navi Mumbai as data center hubs. Consequently, the Mumbai data center market is forecast to witness significant growth, reaching a projected capacity of 1,491.38 MW by 2029.

Competitive Landscape                             

Major players operating in India Data Center Market include Cyfuture India Pvt. Ltd, Tata Communications Ltd, Sify technologies Ltd, Netmagic Solutions Pvt Ltd, Equinix Inc., NTT Ltd, Nxtra Data Ltd, STT CDG Pte Ltd, AdaniConnex, and CtrlS Datacenters. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2024 - CtrlS Datacenters announced that it was constructing a new data center campus in Chennai, India. With an investment of INR 4,000 crore (approximately USD 482.5 million), the project aims to provide 72MW of power across two buildings spanning 1 million sq ft.

• In October 2023 - Black Box, a US-based IT solutions firm, ventured into India's digital infrastructure and data center integration sector to meet growing client demands.

Scope of the Report

By Service Model

• Co-location

• Managed Services

By Tier Classification

• Tier 1

• Tier 2

• Tier 3

• Tier 4

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Data Center Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing Digital India
         2. Growing Government Initiatives
      2. Restraints
         1. Land Availability
         2. Power Issues
      3. Opportunity
         1. Tier 3 & Tier 4 Data Centers
         2. Hyper-scale Data Centers
      4. Challenges
         1. Skilled Workforce
         2. Data Security Concerns
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Data Center Market: Pricing Analysis
5. India Data Center Market: Marketing Strategies
6. India Data Center Market Overview
   1. Market Size & Forecast, 2019-2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Service Model
         1. Co-location

6.2.1.1.1. Retail Co-location

6.2.1.1.2. Wholesales co-location

6. 1. 1. 2. Managed Services
         3. Others
      2. By Tier Classification
         1. Tier 1
         2. Tier 2
         3. Tier 3
         4. Tier 4
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Data Center Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Service Model
      2. By Tier Classification
8. South India Data Center Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Service Model
      2. By Tier Classification
9. East India Data Center Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Service Model
      2. By Tier Classification
10. West India Data Center Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Service Model
       2. By Tier Classification
11. India Data Center Market: Import & Export
12. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Data Center Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operation Channel Parameters
    4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
13. Impact of Geopolitical Tensions in India Data Center Market
14. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Cyfuture India Pvt. Ltd.
    2. Tata Communications Ltd.
    3. Sify Technologies Ltd.
    4. Netmagic Solutions Pvt. Ltd.
    5. Equinix Inc.
    6. NTT Ltd.
    7. Nxtra Data Ltd.
    8. STT CDG PTE Ltd.
    9. AdaniConnex
    10. CtrlS Datacenter
    11. Other Prominent Players
15. Key Strategic Recommendations
16. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       India Data Center Market Segmentation

Figure 2       India Data Center Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Data Center Market Size, By Value (USD Billion), 2019-2030

Figure 5       India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Figure 6       India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Figure 7       India Data Center Market Share, By Region, By Value (USD Billion) 2019-2030

Figure 8       North India Data Center Market Size, By Value (USD Billion), 2019-2030

Figure 9       North India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Figure 10     North India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Figure 11     South India Data Center Market Size, By Value (USD Billion), 2019-2030

Figure 12     South India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Figure 13     South India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Figure 14     East India Data Center Market Size, By Value (USD Billion), 2019-2030

Figure 15     East India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Figure 16     East India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Figure 17     West India Data Center Market Size, By Value (USD Billion), 2019-2030

Figure 18     West India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Figure 19     West India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

List of Tables      

Table 1        India Data Center Market Size, By Value (USD Billion), 2019-2030

Table 2        India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Table 3        India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Table 4        India Data Center Market Share, By Region, By Value (USD Billion) 2019-2030

Table 5        North India Data Center Market Size, By Value (USD Billion), 2019-2030

Table 6        North India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Table 7        North India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Table 8        South India Data Center Market Size, By Value (USD Billion), 2019-2030

Table 9        South India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Table 10      South India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Table 11      East India Data Center Market Size, By Value (USD Billion), 2019-2030

Table 12      East India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Table 13      East India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Table 14      West India Data Center Market Size, By Value (USD Billion), 2019-2030

Table 15      West India Data Center Market Share, By Service Model, By Value (USD Billion) 2019-2030

Table 16      West India Data Center Market Share, By Tier Classification, By Value (USD Billion) 2019-2030

Table 17      Cyfuture India Pvt. Ltd. Company Overview

Table 18      Cyfuture India Pvt. Ltd. Financial Overview

Table 19      Tata Communications Ltd. Company Overview

Table 20      Tata Communications Ltd. Financial Overview

Table 21      Sify Technologies Ltd. Company Overview

Table 22      Sify Technologies Ltd. Financial Overview

Table 23      Netmagic Solutions Pvt. Ltd. Company Overview

Table 24      Netmagic Solutions Pvt. Ltd. Financial Overview

Table 25      Equinix Inc. Company Overview

Table 26      Equinix Inc. Financial Overview

Table 27      Ntt Ltd. Company Overview

Table 28      Ntt Ltd. Financial Overview

Table 29      Nxtra Data Ltd. Company Overview

Table 30      Nxtra Data Ltd. Financial Overview

Table 31      Stt Cdg PTE Ltd. Company Overview

Table 32      Stt Cdg PTE Ltd. Financial Overview

Table 33      Adaniconnex Company Overview

Table 34      Adaniconnex Financial Overview

Table 35      Ctrls Datacenter Company Overview

Table 36      Ctrls Datacenter Financial Overview

Table 38      Other Prominent Players Market Company Overview

Table 39      Other Prominent Players Market Financial Overview