India Data Centre Market Size, Share, Report 2025 to 2034

India Data Centre Market Size and Growth 2025 to 2034

The India data centre market size was valued at USD 5.87 billion in 2024 and is expected to be worth around USD 14.21 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.24% over the forecast period 2025 to 2034.

The india data centre market is growing very fast due to the vast demand for scalable and efficient data storage and processing solutions from IT, telecommunications, BFSI, healthcare, and e-commerce industries. The expansion of cloud computing, IoT, and big data analytics has further amplified the requirement for advanced data centre facilities. With an increasing focus on energy efficiency, green data centres, and high-speed connectivity, innovative technologies like AI-enabled cooling systems and modular data centres are gaining traction. Enhanced R&D investments and strategic partnerships continue to fuel advancements, ensuring that data centres meet the evolving needs of global industries.

CEO Statements

Google – Sundar Pichai, CEO

• "As we continue to expand our presence in India, we are committed to building the next generation of data centers to support the growing demand for cloud services, AI, and digital transformation. Our investment in India’s data center infrastructure will further empower businesses, governments, and consumers by providing secure and scalable solutions."

Tata Consultancy Services (TCS)– Rajesh Gopinathan, CEO

• "With the growth of data and the increasing complexity of cloud computing, our investments in data center infrastructure enable us to provide secure, scalable solutions to meet the needs of our global clients. TCS is poised to play a key role in India’s data center revolution, driving innovation and supporting sustainable growth."

India Data Centre Market Growth Factors

• Rapid Digitalization: The shift in the industrial sectors, including banking, retail, and healthcare, to digital means of operations is increasing the demand for data storage and processing. A rapidly growing requirement for infrastructure that can ensure effective data management and security associated with basic online services exists. Companies in India, including Tata Communications, increase their data centers to be able to provide for this need, riding on the sharp digital transformation the country has recorded.
• Cloud Acceptance: The increase in shift towards cloud services has impacted the data center market to a great extent, and has made companies upscale their IT infrastructure. Growing reliance on cloud computing for storage, analytics, and operations has produced a sizeable demand for data centers. Amazon Web Services (AWS) benefits from having a large physical presence in India when it comes to its data-centers, which allows it to exploit the rapid adoption of cloud platforms within the country.
• E-commerce Boom: The rapid growth of e-commerce has seriously increased the demand for data centers because these online retailers immediately need to be functional with efficient data handling. Companies like Flipkart and Amazon India are continuously investing in building data infrastructure to handle large volumes of both customer and product information to provide better services to customers through faster and more reliable service offerings.

India Data Centre Market Trends

• Hyperscale Data Centers: The huge hyperscale data centers in large numbers are trending since big tech companies need data centers of such massive volumes. Google Cloud and Microsoft have already started establishing large hyperscale data centers across India to support cloud-based services in all regions.
• Edge Computing: The lower latency requirements of industries are a strong trend for localized data processing, making edge computing more important. Edge data centers are an investment for Airtel as they would support telecom networks and help improve the services offered to users.
• Blockchain Adoption: It is a trend toward greater security and transparency of data with blockchain technology, and so the decentralized solution has compelled data centers to shift their approach. Wipro has been studying blockchain-based solutions in its data centers for supporting secure data processing in diverse industries.

Report Scope

India Data Centre Market Dynamics

Drivers

Green Data Centers

• These have generated the demand for green data centers that are energy efficient and use non-conventional sources of energy. This trend goes in line with reducing the ecological footprint of the IT infrastructure. NTT Global Data Centers in India is investing in eco-friendly data-centers using renewable energy sources to meet growing demand and sustainability goals.

IT Hubs of the World

• India has been a global IT hub serving as the base for outsourcing and business process services in the world. This makes for a high demand for data centers to support business. Such companies as Infosys take advantage of data centers in India to create a safe, scalable environment to foster further market growth.

Hybrid Cloud Development

• Hybrid cloud models are in an increased demand as they offer flexibility by saving cost through a combination of on-premises and public cloud services. Therefore, due to the immense need in industry, organizations like Microsoft Azure and IBM Cloud are making huge investments into hybrid cloud development to meet different industry needs.

Restraints

High Electricity Rates

• Electricity costs connect to profits; thus, in India, many are unable to lift profitability and expansion. Sify Technologies is surviving on the current dynamics by utilizing energy-efficient data centers, although overall, higher costs of electricity relating to many players are still underwhelming.

Poor Infrastructure

• Even though the demands grow, there is still an underdeveloped infrastructure not only in rural or faraway places, which delays the setting of data centers. CtrlS Datacenters has got the struggle of reaching the underserved areas-dal-la da datacenter space in India.

Lack of Trained Working Force

• The lack of skilled people to handle data center management and operations seems to be a limiting factor for development. Tata Communications verifies that, though it is one of the bigger players, it still finds it challenging to identify trained engineers to manage its constantly expanding infrastructure.

Opportunities

Regional Expansion

• Expanded data center infrastructure in Tier 2 and Tier 3 cities may be the opportunity for the companies to monetize the growing demand from businesses in those regions. CtrlS Datacenters has made huge investments in Tier data centers in smaller cities to provide enterprise solutions to the local businesses.

5G Infrastructure Support

• The launch of 5G networks in India will create a surge in localized data centers to support high-speed services. Reliance Jio is looking into deploying data centers all over India to ensure supply of its 5G services with an emphasis on reliable service and low latency.

Integration with Smart Cities

• The growth of smart cities all across India is going to require huge data centers to carry IoT devices, real-time data, and analytics. L&T has collaborated with different municipalities in supporting smart city initiatives with its setting up of data centers that providing urban management.

Challenges

Barriers to Regulation

• New regulations and compliance statutes can oftentimes stymie data centers in their operations. Companies like IBM are finding it difficult to be in line with the data and IT security-and-encryption laws of India while extending their data infrastructure.

High Energy Consumption

• Energy-intensity still becomes one of the big minus sides of the data center. The energy intake conflicts with Tata Communications in striving for sustainability.

Obsolescence through technology

• Since a rapid up-grade technology makes data center infrastructure outdated quickly, Sify Technologies has to keep changing its facilities to stay competitive and satisfy its clients' latest demands.

India Data Centre Market Segmental Analysis

The India data centre market is segmented into type, component, tier level, data center size, and industry. Based on type, the market is classified into enterprise data centers, colocation data centers, edge data centers, hyperscale data centers. Based on component, the market is classified into hardware, software, and service. Based on tier level, the market is classified into tier 1 and tier 2, tier 3, and tier 4. Based on data center size, the market is classified into small, medium, and large, Based on industry, the market is classified into BFSI, IT & telecom, healthcare, government, manufacturing, retail & e-commerce, and others (media & entertainment).

Type Analysis

Enterprise Data Centers: Enterprise data centers are owned and operated by an organization to execute its internal IT infrastructure. They are usually private, with a specific design for business. Companies like Tata Consultancy Services (TCS) operate enterprise data centers in India, which can take care of the volumes of business-critical data in addition to enhancing security. Enterprises have excellent control over their data privacy and internal resources and can support industries demanding higher standards of compliance requirements.

Colocation Data Centers: Colocation data centers offer the room for companies to rent servers, storage, and network equipment. Such data centers enable a business to manage its IT infrastructure without the need to build their own facilities. Companies such as CtrlS Datacenters are in India providing colocation facility services: they afford power and cooling with reliable network connectivity. This service helps businesses save costs and become convenient in their operation through outsourcing data center needs while still having full control of their equipment.

Edge Data Centers: Edge data centers put processing power closer to where data is generated and consumed, which reduces latency. They are becoming very important in the world of IoT, autonomous vehicles, and real-time data analytics. In India, NexGen Data Centers is at the forefront in offering edge computing solutions to speed up the processing of data and reduce reliance on a centralized data center. These localized hubs promise rapid delivery of data to support high-bandwidth applications such as streaming and real-time analytics.

Hyperscale Data Centers: Hyperscale data centers are for providers of big-scale cloud services and giant technology giants since they are built for extremely large storage and processing capacities. In India, companies like Amazon Web Services (AWS) and Google Cloud are developing hyperscale data centers in response to the growing demand for cloud services. Varying in size, these centers boast tremendous computing power and scalable architecture, combined with strong security, to take care of massive data needs of enterprises, thereby allowing fast and reliable, cost-effective connectivity for global cloud service offerings.

Component Analysis

Hardware: The components of a data center hardware include servers, storage systems, network switches, and physical infrastructure for the housing of cooling systems. Twomost major datacentre integrators at the Indian arch are HPE and Cisco Systems. The systems assure high availability and energy efficiency and scalability, all very critical for businesses involved in bulk data processing and storing, particularly when cloud and hybrid are used.

Software: Software in the data centers helps monitor and manage hardware, virtualized environments, and the databases stored. The key pillar delivers virtualization tools, operating systems, and cloud management platforms. VMware and Microsoft offer essential software solutions for Indian data centers to our businesses to better streamline data operations and enhance their flexibility. These will optimize performance and automate tasks such as load balancing, resource allocation, and data security.

Service: Services related to data centers include managed services, cloud hosting, network services, and consulting. STT GDC India provides such services, wherein it provides enterprises with scalable and reliable data center solutions. The demand for these services is growing as businesses increasingly rely on outsourcing their IT operations. These services help businesses improve operational efficiency, ensure business continuity and, more so, reduce capital expenditure from the knowledge base and investments of third-party providers.

India Data Centre Market Top Companies

• Adani Group
• Arshiya Limited
• CTRLS Datacenters Ltd.
• Equinix Inc
• ESDS Software Solution Ltd.
• NetDataVault (NGBPS Limited)
• Nikom InfraSolutions Pvt. Ltd
• Nippon Telegraph and Telephone Corporation
• Nxtra Data Limited (Bharti Airtel Limited)
• Sify Technologies Limited
• Sterling and Wilson Pvt. Ltd.
• Web Werks India Pvt. Ltd.

The new entrants in the India data centre sector are employing technology to devise the most efficient and energy-efficient solutions, focusing on the integration of renewable energy sources, advanced cooling systems, and automation. These innovations are designed to optimize operational efficiency while reducing costs and environmental impact. Companies are also leveraging AI, machine learning, and edge computing to enhance the speed and reliability of data processing, enabling faster service delivery and greater scalability. This technological approach is reshaping the data centre landscape for the future.

Recent Developments

Recent strategic expansion and investment in the data centre market reflect a strong commitment to enhancing infrastructure, supporting growing demand for data storage, and driving technological innovation. These efforts highlight the industry's focus on sustainability, energy efficiency, and meeting the increasing need for scalable and secure data solutions. By capitalizing on emerging technologies and expanding capacity, companies aim to reinforce their market position and meet the rising demands of digital transformation across sectors. Some notable examples of key developments in the Data Centre Market include:

• In April 2024, CTRLS Datacenters Ltd. revealed plans to build a 130,000 sq. ft. data center in Hyderabad’s Gachibowli district, featuring 13MW capacity. This facility is designed to meet rising demand and strengthen the company's position in the growing Indian data center industry.
• In November 2023, Adani Enterprises announced plans to invest $1.5 billion over the next three years in its data center business, with a goal to establish nine data centers totaling 1 gigawatt of capacity by 2030.

Market Segmentation

By Type  

• Enterprise Data Centers 
• Colocation Data Centers
• Edge Data Centers
• Hyperscale Data Centers

By Component 

• Hardware
• Software
• Service 

By Tier Level

• Tier 1 and Tier 2
• Tier 3
• Tier 4

By Data Center Size

• Small
• Medium
• Large

By Industry

• BFSI
• IT & Telecom
• Healthcare
• Government
• Manufacturing
• Retail & E-commerce
• Others (Media & Entertainment)