India Data Center Market Report, Size, Share, Opportunities, and Trends Segmented By Type, Component, End User, and Geography – Forecast 2025 to 2030

Description

India Data Center Market Size:

India Data Center Market is expected to witness robust growth over the forecast period.

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The Indian data center market is undergoing a significant transformation, propelled by the nation's digital growth agenda and the escalating demand for data processing and storage. This growth is a direct consequence of widespread internet penetration, the proliferation of smartphones, and the government's steadfast commitment to digital governance and services. As enterprises and hyperscale cloud providers expand their presence in India, the need for robust, scalable, and secure data center infrastructure has become an economic imperative. The market is evolving from a foundational necessity to a strategic asset, with investments flowing into building facilities that can support next-generation workloads.

India Data Center Market Analysis

• Growth Drivers

The primary catalyst for market growth is the imperative for data localization, as articulated in various government policies. The Digital Personal Data Protection Act, 2023, while not mandating strict data localization, encourages the storage and processing of personal data within the country by simplifying cross-border data transfer regulations. This creates a compelling incentive for both domestic and foreign entities to build or expand their data center footprint in India to ensure compliance and gain user trust. The rapid adoption of AI applications and cloud computing services also directly propels market expansion. These technologies require massive computational power and low-latency access to data, which hyperscale and colocation data centers are uniquely positioned to provide. As more businesses migrate their operations to the cloud and leverage AI for enhanced productivity, the demand for high-density, AI-ready data center capacity intensifies. Furthermore, the nationwide rollout of 5G networks is generating a need for edge data centers closer to the end-user to facilitate real-time applications and reduce latency, thereby decentralizing the data center landscape.

• Challenges and Opportunities

The market faces significant challenges, primarily related to power availability and sustainability. Data centers are highly energy-intensive, and securing an uninterrupted, clean power supply is a major operational hurdle. The increasing cost of setting up facilities, with the average cost per MW rising, presents a financial constraint for new entrants. Logistical complexities also exist in procuring and transporting critical hardware. However, these challenges create distinct opportunities. The need for sustainable operations and a clear pathway to net-zero emissions has opened an opportunity for data center operators to invest in renewable energy sources. This shift not only addresses environmental concerns but also offers a strategic advantage in a market increasingly conscious of its carbon footprint. The opportunity to develop new power solutions, such as small modular reactors (SMRs), is being explored by the government to meet the burgeoning energy needs of the sector.

• Supply Chain Analysis

The global data center supply chain is complex and highly dependent on international sourcing for critical components. Key production hubs for hardware such as servers, networking equipment, and cooling infrastructure are predominantly located in East Asia. The logistics of importing this specialized equipment into India present complexities, including customs procedures and transportation costs. This dependency makes the Indian market vulnerable to global supply chain disruptions and geopolitical tensions. While a push for domestic manufacturing under the "Make in India" initiative is underway, the industry remains reliant on global OEMs for high-end technology.

India Data Center Market Government Regulations:

India Data Center Market Segment Analysis:

• Colocation Data Center

The colocation data center segment is experiencing significant demand as a direct consequence of the capital-intensive nature of building and maintaining proprietary facilities. Large enterprises, particularly in the IT & Telecommunications and BFSI sectors, are increasingly opting for colocation models to meet their infrastructure needs without undertaking the massive upfront investment and operational burden of building their own data centers. The need for scalability and reliability further amplifies this demand. Colocation providers offer flexible capacity, allowing businesses to expand their IT footprint rapidly in response to growth. The model also grants access to a high-density, well-connected ecosystem, providing low-latency connections to multiple networks and cloud service providers. This is a critical growth driver for companies that rely on high-speed data transfer and resilient network connectivity for their operations.

• IT & Telecommunications End-User

The IT & Telecommunications sector is a foundational consumer of data center services, driven by the core functions of network management, cloud services, and digital infrastructure provision. Telecommunication companies require data centers to host their network equipment, manage large volumes of subscriber data, and support new services like 5G and IoT. The proliferation of digital services and the massive data traffic generated by them necessitate continuous data center capacity expansion. Furthermore, IT companies, including hyperscalers, leverage data centers to deliver cloud computing, software-as-a-service (SaaS), and other digital offerings to their clients. Their demand is defined by the need for massive, scalable infrastructure that can handle fluctuating workloads and provide a high degree of uptime and reliability. This segment's growth is inextricably linked to the overall digital transformation of the Indian economy.

India Data Center Market Competitive Analysis

The Indian data center market is characterized by a mix of established global players and rapidly expanding domestic companies. The competitive landscape is becoming more intense as firms race to build hyperscale and edge data center capacity to capture demand.

• Nxtra by Airtel

Nxtra by Airtel, a subsidiary of Bharti Airtel, leverages its parent company's extensive telecommunications network to offer a differentiated service. Its strategic positioning is to provide a dense network of over 120 edge data centers and a growing number of hyperscale facilities. This approach allows Nxtra to offer low-latency connectivity, a key growth driver for real-time applications and 5G services. The company's focus on sustainability is also a strategic differentiator, with a commitment to sourcing a significant portion of its energy from renewable sources.

• Yotta Data Services

Yotta Data Services, part of the Hiranandani Group, positions itself as a hyperscale data center provider. Its strategy revolves around building massive, integrated data center parks, such as its flagship facility in Navi Mumbai. This scale allows Yotta to achieve economies of scale and offer competitive pricing to hyperscale cloud providers and large enterprises. The company has also focused on building a comprehensive ecosystem of services, including cloud and AI solutions, to provide an integrated value proposition to its clients.

• STT GDC India

STT GDC India operates as a leading colocation provider, with a nationwide footprint of data centers. Its strategic focus is on delivering high-quality, reliable, and compliant data center infrastructure. The company’s long-standing presence and extensive network of facilities across multiple cities provide a strong competitive advantage. STT GDC India is also heavily investing in AI-ready infrastructure, recognizing the growing demand for specialized facilities that can support high-density computing workloads.

India Data Center Market Developments

• September 2025: Equinix Opens First AI-Ready Data Center in Chennai with $69 Million Investment

Equinix, Inc. announced the opening of its first International Business Exchange (IBX) data center in Chennai, India. Designated as CN1, the facility represents an initial investment of USD 69 million. The data center is purpose-built to accommodate high-density, compute-intensive workloads and is interconnected with Equinix's existing Mumbai campus, providing low-latency access to a key digital ecosystem.

• September 2025: RailTel to Commence Construction of Noida Data Center

RailTel, a public sector undertaking, announced it will commence construction for a new data center in Noida with an initial capacity of 5MW. The project is being executed in partnership with Techno Electronic & Engineering Company (TEECL) and is expected to be operational in 18 months. This development underscores the ongoing expansion of data center infrastructure, including by public sector entities, to meet growing demand.

• April 2025: STT GDC India Unveils AI-Ready Data Center Campus in Kolkata

ST Telemedia Global Data Centers (India) (STT GDC India) announced the launch of its new data center campus in New Town, Kolkata. The facility is designed to support the burgeoning demands of AI computing with high-density rack configurations and advanced cooling systems. This capacity addition is part of the company's broader strategy to expand its nationwide footprint and cater to the specific needs of the AI ecosystem in Eastern India.

India Data Center Market Scope:

India Data Center Market Segmentation

• BY COMPONENT
  • Hardware
    • Servers
    • Network Infrastructure
    • Cabling Infrastructure
    • Power Infrastructure
    • Cooling Infrastructure
    • Physical Security
    • Storage Infrastructure
  • Software and Services
• BY DATA CENTER TYPE
  • Colocation Data Center
  • Enterprise Data Center
  • Hyperscale Data Center
  • Edge Data Center
  • Micro Data Center
• BY TIER LEVEL
  • Tier I
  • Tier II
  • Tier III
  • Tier IV
• BY ENTERPRISE SIZE
  • Large Enterprises
  • Small and Medium Enterprises (SMEs)
• BY END USER
  • IT & Telecommunications
  • Banking, Financial Services, and Insurance (BFSI)
  • Government & Public Sector
  • Healthcare & Life Sciences
  • Retail & E-commerce
  • Manufacturing
  • Energy & Utilities
  • Media & Entertainment
  • Others
• BY REGION
  • Maharashtra
  • Karnataka
  • Kolkata
  • Uttar Pradesh
  • Others

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Navigation:

• India Data Center Market Size:
• India Data Center Market Key Highlights:
• India Data Center Market Analysis
• India Data Center Market Government Regulations:
• India Data Center Market Segment Analysis:
• India Data Center Market Competitive Analysis
• India Data Center Market Developments
• India Data Center Market Scope:
• Our Best-Performing Industry Reports:

Page last updated on: September 30, 2025

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK 

5. INDIA DATA CENTER MARKET BY COMPONENT

5.1. Introduction

5.2. Hardware

5.2.1. Servers

5.2.2. Network Infrastructure

5.2.3. Cabling Infrastructure

5.2.4. Power Infrastructure

5.2.5. Cooling Infrastructure

5.2.6. Physical Security

5.2.7. Storage Infrastructure

5.3. Software and Services

6. INDIA DATA CENTER MARKET BY DATA CENTER TYPE  

6.1. Introduction

6.2. Colocation Data Center

6.3. Enterprise Data Center

6.4. Hyperscale Data Center

6.5. Edge Data Center

6.6. Micro Data Center

7.  INDIA DATA CENTER MARKET BY TIER LEVEL

7.1. Introduction

7.2. Tier I

7.3. Tier II

7.4. Tier III

7.5. Tier IV

8. INDIA DATA CENTER MARKET BY ENTERPRISE SIZE   

8.1. Introduction

8.2. Large Enterprises

8.3. Small and Medium Enterprises (SMEs)

9. INDIA DATA CENTER MARKET BY END USER   

9.1. Introduction

9.2. IT & Telecommunications

9.3. Banking, Financial Services, and Insurance (BFSI)

9.4. Government & Public Sector

9.5. Healthcare & Life Sciences

9.6. Retail & E-commerce

9.7. Manufacturing

9.8. Energy & Utilities

9.9. Media & Entertainment

9.10. Others

10. INDIA DATA CENTER MARKET BY REGION   

10.1. Introduction

10.2. Maharashtra

10.3. Karnataka

10.4. Kolkata

10.5. Uttar Pradesh 

10.6. Others

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Market Share Analysis

11.3. Mergers, Acquisitions, Agreements, and Collaborations

11.4. Competitive Dashboard

12. COMPANY PROFILES

12.1. Airtel 

12.2. Hiranandani Group

12.3. NVIDIA Corporation

12.4. CtrlS Datacenters

12.5. Reliance Jio

12.6. Equinix Inc.

12.7.  STT GDC Pte Ltd

12.8. Sify Technologies

12.9. Iron Mountain Data Centers

12.10. ESDS

12.11. Microsoft

12.12. Oracle

12.13. Adani Group

13. APPENDIX

13.1. Currency 

13.2. Assumptions

13.3. Base and Forecast Years Timeline

13.4. Key benefits for the stakeholders

13.5. Research Methodology 

13.6. Abbreviations 

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Airtel

Hiranandani Group

NVIDIA Corporation

CtrlS Datacenters

Reliance Jio

Equinix Inc.

 STT GDC Pte Ltd

Sify Technologies

Iron Mountain Data Centers

ESDS

Microsoft

Oracle

Adani Group

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