The Indian Colocation market will grow at a CAGR of 23.21% from USD 0.662 billion in 2025 to USD 1.88 billion in 2030.
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.
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 colocation data centers. 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.
The establishment of 5G technologies and digital schemes is 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 transfer, thereby augmenting the market growth.
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 an employee strength of more than 500 to improve its 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.
India Colocation Market Segmentation: