India Data Center Market Segmented By Solution (Software, Services (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure and Others), By Type (Corporate and Web Hosting), By End-User (Information Technology & Telecom, Government, BFSI, Healthcare and Others), By Region, Competition Forecast & Opportunities, 2029

India Data Center market is growing owing to growing data consumption, which has spurred the need to store and process data efficiently along with rising government investment to provide the physical data center space. The increasing availability of skilled workforce and operational and development cost advantage across various end-use industries have led to an increased focus on data center to overcome the situation of high data consumption. Moreover, 5G infrastructure investments in edge data centers have further boosted the demand for data center. Government’s measures such as Digital India initiative, emphasis on self-reliance, classification of data centers as infrastructure asset are further increasing the demand for more data centers in the country, which is increasing the capability for data center. Many enterprises are adopting data center as a cost-effective solution. Moreover, the market is expected to be driven by rising demand for digital age networking, which enables businesses to progress toward digital transformation and produce new business outcomes by utilizing new digital age technologies such as the Internet of Things (IoT), cloud computing, and Artificial Intelligence (AI) and thus relying on different software are driving the market. Moreover, the growing demand for data and high bandwidth capacity, especially due to increasing smartphone users promote the development of the data center market of India throughout the forecast period.

A data center is a physical location with networked computers, storage systems, and computational infrastructure that businesses utilize to store, gather, analyse, and disseminate massive quantities of data. It offers reliable storage without the glitches of portable technology, eliminating a portion of losses, reduce costs, manage data, and protect upcoming technology investments. Data centers are a crucial component of every organization, since they are created to support corporate applications and offer services such as productivity applications, high-volume e-commerce transactions, data storage, management, backup, and recovery. Edge data centers can assist reduce latency for real-time, data-intensive workloads including big data analytics, artificial intelligence (AI), and content delivery apps, enhancing overall application performance and user experience. For enterprises that lack the space, personnel, or experience to deploy and operate all or part of their IT infrastructure on-site, managed data centers and colocation facilities are choices. India's data center industry is expanding rapidly in the age of digitization. With a predicted expansion driven by technologies like artificial intelligence, machine learning, and analytics, the nation is ideally positioned to become a worldwide hub for data centres focusing on cloud computing.

Rapid Adoption of Cloud and Digital Transformation by Indian Companies

People are flocking to the cloud because of its scalability and low cost. Several cloud service providers from across the world have revealed their availability zones in India, particularly in locations like Hyderabad, Delhi (NCR), Chennai, Mumbai, and Bengaluru since they have strong fiber connection in addition to being close to clients. Three availability zones (AZs) are being built by Amazon Web Services (AWS) in Hyderabad. Microsoft has purchased Hyderabad-area property tracts to establish a new data center zone. While 39% of medium-sized businesses and 38% of small businesses started their cloud journeys, 67% of large firms had already advanced cloud adoption. Moreover, Mumbai and Delhi-NCR are Google's two cloud computing hubs in India. Businesses like Yotta Infrastructure, NTT-Netmagic, STT GDC India, Sify Data Centers, CtrlS, and others building hyperscale data centers and data center parks in India. Moreover, as cloud-managed services are a vital part of digital transformation, their demand will further expand in the recent years. The government's efforts to transform India into a global data hub has resulted in several regulations and reforms that have given the essential framework for this expansion, and more new firms are expected to enter the market during the forecast period. Therefore, the rapid adoption of cloud and digital transformation by Indian companies are driving the growth of India Data Center Market.

5G Will Increase Investments in Edge Data Centers

Edge computing is becoming more popular in the market just like 5G has been massively ramped up in the last couple of years, as a result of the rising use of connected devices among consumers and organizations. In many Tier II and Tier III cities as well as in rural areas, this has resulted in a significant demand for higher bandwidth Internet, necessitating the construction of data centers to process information on comparison with big cities. Edge data centers will develop a decentralized data center architecture in which numerous edge data centers are linked to a single hyperscale facility. Over 25.2% of Indian population in 189 Indian cities have 5G coverage as of January 2023, with significant market participants including Reliance Jio, Bharti Airtel, and Vodafone Idea. In 256 cities, Reliance Jio is offering 5G connection. Bharti Airtel is second, covering more than 80 cities, while Vodaphone is third. Throughout India, companies such as Airtel are partnering up to design and build networks by using equipment from large enterprises such as Nokia, Ericsson, and Samsung. Moreover, the 5G implementation will further offers faster access to information, which will lead to more edge datacenter deployments due to the surge in data consumption. Furthermore, the companies are extending their 5G coverage to new locations across the country which necessitates the construction of the physical infrastructure to facilitate the significant degree of data sharing. Hence, increasing 5G investment is driving the growth of India Data Center market.

Growing Use of Renewable Energy

While the data centers are driving India’s digital transformation journey, many data center service providers have invested in clean, renewable energy sources to run their existing and future facilities as a result of the rising data center power usage and the desire to reduce carbon footprint. Data centers can consume large amount of energy if not planned well. The main energy sources in India are coal, lignite, oil, and natural gas, both of which have a negative influence on the environment. On the contrary, according to Central Electricity Agency (CEA), around 42.5% of the energy generation is done through renewable sources such as wind power, solar power, hydropower, and biomass energy. In addition, the growth is contributing to the increase of 10.8% in energy generation in the country during the year 2022-23. Moreover, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM) and Draft National Energy Policy, both call for the Net Zero Emissions by 2070 to be implemented in order to fully use the country's potential for renewable energy. Furthermore, the Government of India has also taken the Production Linked Incentive (PLI) scheme initiative to strengthen the industrial sector and increase the production of raw materials for renewable energy. Recently, Indian government has budgeted an additional investment of more than USD 30 billion to produce renewable energy by using sunlight, air, and water. Furthermore, government initiative toward proliferating the large-scale projects to adopt and support renewable energy such as the scheme for biogas power initiative was set by the Ministry of New and Renewable Energy. The Indian data center business is still in its infancy, so as it expands, it will be more adaptive and able to absorb green technology. Besides this, the country may strengthen its position as a worldwide hub for green data centers. Therefore, growing use of renewable energy has led to the growth of India Data Center market.

Recent Development

• On January 31, 2023, ST Telemedia Global Data Centres India Private Limited, a data center firm announced a partnership with O2 Renewable Energy (IV) Private Limited, a subsidiary of O2 Energy SG Pte. Ltd., Singapore. O2 Energy will supply renewable energy from its Wind-Solar Hybrid (WSH) project of 201.1 MWac to Data Centre in Bengaluru under a captive structure. Where FRN2 will provide capacity for 600 racks on the ground floor and MCR2 will offer more than 1000 new server racks.
• On May 12, 2022, Sify Technologies Limited, a digital ICT solutions provider firm announced the strategic partnership with Cyxtera. As part of the partnership, it will help Cyxtera to bring colocation solutions in India. Customers of Cyxtera will now be able to use infrastructure solutions at Sify's carrier-neutral facilities in Mumbai, Noida, Chennai, Hyderabad, and Kolkata for their hybrid IT requirements.
• On January 16, 2023, CtrlS Datacenters Ltd., announced the expansion of its business in the global market and is planning to foray into several potential markets in Southeast Asia and the Middle East to build a connected future that will benefit enterprise customers and hyperscalers around the world.

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Market Segmentation

India Data Center Market is divided into solution, type, end-user, and region. Based on solution, the market is further divided into IT Infrastructure, general infrastructure, electrical infrastructure, mechanical infrastructure, and others. Based on type, the market is further segmented into corporate and web hosting. Based on end-user, the market is further divided into information technology & telecom, government, BFSI, healthcare, and others.

Market Player

Major market players in the India Data Center market are CtrlS Datacenters Ltd, Nxtra Data Ltd, STT GDC India Private Limited, Netmagic IT Services Private Limited, ESDS Software Solution Pvt. Ltd., Sify Technologies Limited, Tata Communications Limited, GPX India Pvt Ltd, Web Werks India Pvt. Ltd., NxtGen Data Center and Cloud Services Private Limited.

Report Scope:

In this report, the India data center market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Data Center Market, By Solution:

o   IT Infrastructure

o   General Infrastructure

o   Electrical Infrastructure

o   Mechanical Infrastructure

o   Others

• India Data Center Market, By Type:

o    Corporate

o    Web Hosting

• India Data Center Market, By End-User:

o    Information Technology & Telecom

o    Government

o    BFSI

o    Healthcare

o    Others

• India Data Center Market, By Region:

o    East India

o    West India

o    North India

o    South India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India data center market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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