India Data Center Market is expected to register a CAGR of 12.4% through 2030F
The India Data Center Market is rising due to increasing
digital transformation, cloud adoption, and the growing demand for scalable IT
infrastructure in the forecast period 2026-2030F
According to TechSci Research report, “India Data Center Market - By
Region, Competition Forecast & Opportunities 2030F”, India Data Center
Market was valued at USD 5.2 billion in 2024 and is expected to reach at USD
10.58 Billion in 2030 and project robust growth in the forecast period with a
CAGR of 12.4% through 2030. The India Data Center market is driven
significantly by the accelerated adoption of cloud technologies and digital
transformation initiatives across industries. Organizations are increasingly
migrating workloads to the cloud to achieve scalability, operational
efficiency, and cost optimization. which directly correlates with the rising
demand for robust data center infrastructure. Additionally, with industries
such as banking, e-commerce, healthcare, and manufacturing digitizing their
operations, the need for secure and scalable data hosting solutions is surging.
Enterprises are investing heavily in hybrid cloud setups, enabling seamless
data management and compliance with local regulations. Government-backed
programs like Digital India further amplify this trend, incentivizing
enterprises to adopt digital-first strategies and driving sustained investments
in the data center ecosystem.
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spread through XX Pages and an in-depth TOC on the "India Data Center Market"
The South India region is emerging as
the fastest-growing region in the India Data Center market due to a combination
of favorable economic, technological, and infrastructure developments. Key
cities like Bangalore, Chennai, Hyderabad, and Kochi are becoming critical hubs
for data center investments due to their growing IT ecosystem, strong
connectivity, and proximity to major global technology companies. South India
is home to a thriving software and IT services industry, which increasingly
relies on data centers for hosting cloud applications, big data analytics, and
digital transformation initiatives. Cities like Bangalore and Hyderabad are
often referred to as the "Silicon Valley" of India, attracting both
domestic and international players, including AWS, Google Cloud, and Microsoft
Azure. The region’s strong presence in the tech sector has resulted in
substantial demand for high-performance computing, low-latency services, and
secure data storage, all of which are met by the rapidly expanding data center
infrastructure. Additionally, South India benefits from a robust telecom and
fiber optic infrastructure that ensures seamless connectivity, making it an
ideal location for edge computing and disaster recovery services. Another key
driver is the increasing availability of land at competitive prices compared to
other regions like Mumbai, which helps in lowering capital expenditure for data
center operators. Moreover, South India is strategically
positioned with access to renewable energy sources, such as solar power, which
supports the growing demand for energy-efficient and sustainable data centers.
Government initiatives, like the Telangana State Data Center Policy and
Karnataka's IT policies, provide attractive incentives, further boosting
investments in the region. With a growing focus on sustainability, enhanced
infrastructure, and favorable policies, South India is poised to experience
accelerated growth in the data center sector, making it the fastest-growing
region in the India Data Center market.
In 2024, Based on End-User, the Information
Technology & Telecom segment emerged as the dominant end-user category in
the India Data Center market and is expected to maintain its leadership during
the forecast period. This dominance is driven by the rapid digitalization of IT
and telecom operations, the exponential growth of data consumption, and the
increasing demand for cloud services and storage solutions. The IT sector
relies heavily on data centers for hosting enterprise applications, managing
large-scale IT workloads, and enabling seamless data processing to support
global operations. Similarly, the telecom industry plays a critical role in
driving data center demand, with the deployment of 5G networks necessitating
robust data infrastructure for managing increased bandwidth, low-latency
applications, and edge computing deployments. The surge in internet users,
estimated to surpass 1 billion in India by 2025, coupled with the proliferation
of OTT platforms, online gaming, and e-commerce, has further amplified the need
for reliable data center services.
The IT & telecom sector is also at
the forefront of adopting advanced technologies such as artificial
intelligence, big data analytics, and IoT, which require high-performance
computing and massive storage capacities provided by modern data centers. Additionally,
with growing data localization mandates and cybersecurity concerns, IT and
telecom companies are investing heavily in building or leasing local data
center facilities to ensure compliance and secure sensitive customer
information. Leading global cloud providers and domestic telecom giants are
also setting up hyperscale and edge data centers across strategic locations to
meet the increasing demand for scalable infrastructure. This sector's
continuous reliance on digital services, combined with innovation in network
technologies and the integration of renewable energy solutions for sustainable
operations, further reinforces its position as the primary driver of the India
Data Center market. As digital transformation accelerates across the country, the
IT & telecom sector is poised to remain the largest consumer of data center
services, shaping the market's growth trajectory.
Key market players in the India Data
Center Market are: -
- Microsoft Corporation
- Google LLC
- International Business Machines Corporation
- Equinix, Inc.
- Digital Realty Trust, Inc.
- NTT Communications Corporation
- Oracle Corporation
- Schneider Electric SE
- Fujitsu Limited
- Dell Technologies Inc.
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“The India Data Center market presents
significant growth opportunities driven by increased demand for cloud services,
digital transformation, and data localization regulations. With the rapid
adoption of technologies such as 5G, AI, and IoT, businesses require more data
processing and storage capacity, fueling the need for advanced data centers.
Government initiatives like Digital India and favorable policies promoting data
center infrastructure investments create a conducive environment for market
expansion. Additionally, the shift towards sustainability presents
opportunities for operators to integrate renewable energy solutions, reducing
operational costs while meeting environmental goals. The rise of edge computing
and the growing need for low-latency services across industries such as
e-commerce, BFSI, and healthcare further contribute to the demand for distributed
data centers. With increasing investments from global and domestic players, the
market is poised for robust growth, offering lucrative opportunities for
stakeholders.” said Mr. Karan Chechi, Research Director of TechSci Research,
a research-based Global management consulting firm.
“India Data Center Market By Solution (Software, Services), By
Type (Corporate, Web Hosting), By End-User (Information Technology &
Telecom, Government, BFSI, Healthcare, Others), By Region, Competition,
Forecast and Opportunities 2020-2030F” has evaluated the future
growth potential of India Data Center Market and provides statistics
& information on market size, structure, and future market growth. The
report intends to provide cutting-edge market intelligence and help decision
makers take sound investment decisions. Besides the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in India Data Center Market.
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