India Colocation Market Size, Share, Opportunities, And Trends By Type (Retail, Wholesale, Hybrid), By Enterprise Size (Small, Medium, Large), And By Industry Vertical (BFSI, Communication Technology, Education, Healthcare, Media & Entertainment, Retail & E-commerce, Others) - Forecasts From 2024 To 2029

The Indian colocation market is projected to grow at a CAGR of 16.00% thereby reaching a market size of US$1,645.410 million in 2029 from 2022’s value of US$579.917 million.

Colocation data centers provide renting space to companies for their computing hardware and services. It offers reliable communication, scalability, and physical security to application data, thereby providing a cost-effective solution to firms in managing their data which most public cloud providers struggle to provide.

Market Drivers

• Growing digital transformation in industrial sectors has stimulated market growth.

India is experiencing a major shift towards technological innovation and infrastructure which has led to various investment implementations in major states such as Uttar Pradesh, Maharashtra, and Delhi which is expected to lay out a blueprint for the country to achieve effective data processing.

Also, project launches relating to data centers are further accelerating the market demand for the colocation data center. For instance, the government of Uttar Pradesh in October 2022, approved a total of INR16,000 crores of data center projects which involved new establishments as well as improving the existing data center infrastructure.

• 5G establishments and digital schemes bolstered the market growth.

Establishment of 5G technologies and digital schemes positively impacting the colocation market growth in India. The introduction of 5G has created a boom in the volume of data transmission over the years which has created a demand for more data centers. The colocation data centers besides offering scalable digital services also provide an array of redundancies for ensuring constant service supply, especially in power & cooling systems.

India’s digital transformation strategy has accelerated the demand for high-speed internet access which has led to investments and 5G technology and infrastructure. For instance, in October 2022, the Indian Prime Minister issued a 5G service in India to showcase the country’s potential in technological adoption and upgradation. Furthermore, in July 2022, the Government of India launched four new digital services to enhance the accessibility of streamlined services and technology. Such 5G and digital scheme launches will boost demand for ensuring seamless data transferring thereby augmenting the market growth.

• Large enterprises are expected to constitute a considerable market share.

Based on enterprise size, the Indian colocation market is segmented as small, medium, and large. The large enterprise is anticipated to show exponential growth during the forecast period which is attributable to the ongoing efforts by an organization having employee strength of more than 500 to improve their UT infrastructure. Major market players such as Adani Group, Bharti Airtel Limited, and Equinix have well-established collaborations with multinational clients having their regional offices in major metro cities such as Mumbai.

Key Developments

• In June 2023: Colocation provider Equinix Inc launched its digital interconnection services “Equinix Fabric”, “Equinix Internet Exchange”, and “Equinix Internet Access” which will cater to the growing digital infrastructure demand in the country.
• In January 2023: AGP DC InvestCo. Pte Ltd. and National Investment and Infrastructure Fund formed a partnership with Digital Edge Holdings Pte Ltd. for the development of a pan-India hyperscale data center portfolio to support the ongoing digital transformation of the economy.
• In May 2022: Cyxtera formed a strategic partnership with India’s leading digital ICT solutions provider Sify Technologies Limited through which the former would provide its colocation solutions in the Indian market.

Segmentation:

• By Type
  • Retail
  • Wholesale
  • Hybrid
• By Enterprise Size
  • Small
  • Medium
  • Large
• By Industry Vertical
  • BFSI
  • Communication and Technology
  • Education
  • Healthcare
  • Media and Entertainment
  • Retail & E-Commerce
  • Others