India Data Center Market

India data center market size reached at USD 7.1 billion in 2023 and forecast to reach USD 12.0 billion, the market is projected to grow at a robust CAGR of 6.8% between 2024 and 2031.

Data centers refer to the centralized locations where computing and networking equipment are used for the purpose of collecting, storing, processing, distributing, or enabling access to a large volume of data. The data center’s design is based on a network of computing and storage resources that allows the delivery of shared data and applications.

Major India Data Center Market Drivers

The India Data Center market is likely to witness strong demand in the next six years. This is mainly due to the accelerating demand for data storage management and cloud technology over the coming years. With the growing digital transformation in India, various leading organizations are focusing on implementing various advanced technologies such as AI, big data, machine learning, and other technologies. This factor will surge the demand for data center in the country. Moreover, the emerging trend of third-platform technologies, followed by the continuous developments in the IoT and cloud computing, has accelerated the demand for an improved level of computational data and networking sources. In addition to this, the growing trend of the green data center will have a positive impact on the growing demand of the market.

The rising requirement to store data on the cloud has energized the demand for data centers in India. With the increasing penetration of the internet and smart devices, there has been an upsurge in the volume of data generated across the country. This factor will further boost the demand of the market. In 2020, the Ministry of Electronics and information Technology (MeitY) drafted the “New Data Center Policy” which aims to reduce the number of clearance required for setting up a data center. This is another factor that is contributing to the growing demand of the market in the coming years.

Based on type, the market has been segmented into new datacenter and datacenter rebuild. Among these, the new datacenter segment is expected to grow at a higher CAGR during the forecast period. This is mainly due to the rising support from the government, along with the favorable incentives for the development in data centers, especially in Gujarat, Andhra Pradesh, Telangana, and Maharashtra. Moreover, the increasing volume of data generated in India is another factor that is boosting the need for the construction of new data in the country.

On the basis of application, the market has been segmented into IT & Telecom, BFSI, Government, Healthcare, and Others. The IT & Telcom segment is anticipated to grow at a higher CAGR in the market during the forecast period. The increasing growth and construction of IT infrastructure in India is one of the major factor that is responsible for the growing demand of the segment. The developing telecommunication infrastructure needs more data storage facilities to handle the large volume of data. This factor is further energizing the demand of the segment in the coming years.

Key Developments: 

• • In 2020, Equinix, Inc., acquired GPX Global Systems, Inc., to expand its presence in India. The USD $161 million deal will extend Platform Equinix to India with the addition of two world-class, highly interconnected data centers, thus offering a platform for additional expansion in the country.

Segments covered in the Report:

The India Data Center Market segmented into type, application. Based on type, the market is segmented into new datacenter and datacenter rebuild. Based on application, the market is segmented into IT & Telecom, BFSI, Government, Healthcare, and Others.

Market Segmentation

India Data Center Market by Product Type

• • New Datacenter
    • Internal Datacenter
    • Service Provider Datacenter
  • Datacenter Rebuild

India Data Center Market by Application

• • IT & Telecom
  • BFSI
  • Government
  • Healthcare
  • Others