Data Center Market in India - Industry Outlook and Forecast 2021-2026

Data Center Market in India - Industry Outlook and Forecast 2021-2026

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this India Data Center Market Report

The India data center market by investment is expected to grow at a CAGR of over 12% during the period 2020–2026.

The India market is witnessing significant investment from colocation service providers due to high demand from BFSI, logistics, transportation, e-commerce, and government agencies, fueled by the outbreak of the COVID-19 pandemic. Several global colocation and data center service providers have been shown a tremendous inclination toward the Indian data center market, which is likely to contribute to the market growth. For instance, in August 2020, Equinix entered India with the acquisition of GPX Global Systems in Mumbai, which is likely to close by Q2 2021. In December 2020, Adani Group announced to set up a hyperscale data center facility with an investment of around $340 million in Chennai. The company had partnered with the global colocation service provider, EdgeConneX, to build and operate 1 GW of data center campuses across the country, powered by renewable energy power plants in India. Government agencies and enterprises are setting up their own data centers in India. The deployment of on-premises infrastructure solutions continues to grow in the market. Also, the National Payments Corporation of India, State Bank of India, National Payments Corporation of India, and Information Technology Department Tamil Nadu investing in their self-built facilities in the country.

The following factors are likely to contribute to the growth of the India data center market during the forecast period:
Impact of the COVID-19 Pandemic
Increased Investments on Edge Data Centers
Procurement of Renewable Energy in Data Centers
Adoption of Hyperconverged & Converged Infrastructure Platforms

The study considers the present scenario of the India data center market and its market dynamics for the period 2020−2026. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.

India Data Center Market Segmentation
The india data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, general construction, tier standards, geography. The demand for servers suitable for cloud and big analytics workload is expected to grow during the forecast period. The adoption of converged and hyper-converged infrastructure solutions is likely to influence market growth during the forecast period. Enterprises are likely to prefer servers that reduce space in the data center environment without affecting performance. The market is expected to witness the growth of white-box server systems as enterprises are keen to adopt server infrastructure based on open community designs (OCP).

The procurement of lithium-ion UPS solutions is likely to be high among colocation providers. Modular operators are likely to promote less than 500 kW lithium-ion UPS systems. The adoption of single-rack prefabricated solutions will include single-phase lithium-ion systems with a power capacity of less than 10 kVA. There is a growing interest among large and mega facilities to procure UPS systems of more than 750 kVA. However, small and medium facilities are procuring UPS systems with a capacity of less than 500 kVA. Moreover, the growing rack power density and the need to provide high availability services are expected to increase the importance of UPS systems across India.

The use of air-based cooling dominates the India data center market share with over 90% shares. The scarcity of water in the major metropolitan cities is expected to pose challenges for the growth of the water-based cooling technique in the market. The construction of facilities with a power capacity of over 10 MW is expected to contribute to the growth of cooling solutions in the market. Most facilities in India have a flexible design that allows the use of up to 52U rack sizes. The rack market is expected to grow with the rise in the OCP-ready space as a number of cloud-based, and internet-based service providers are considering adopting OCP architecture-based IT infrastructure systems. The use of CRAC units is higher among the facilities in India, and most facilities use air-based cooling systems. Most facilities operating in colder climatic conditions adopt free cooling chillers with smart technology as they enable operations based on the temperature outside.

The data center market in India has a strong presence of construction contractors and sub-contractors. Sterling and Wilson and L&T Construction are among the leading contractors in the market. These providers can perform installation and commissioning services. Thus, the increasing construction of new facilities is likely to influence multiple global construction contractors to enter the market. Installation and commissioning services are essential aspects of data center development. Several Tier III and Tier IV facilities in India are certified by the Uptime Institute for design, construction, and operational stability. This is commonly needed for colocation service providers to attract customers for their service offerings.

According to the Uptime Institute, the total number of the certified data centers are around 35 in 13 states across India, which includes local and global facilities. The number of Tier III certified data centers is higher than Tier IV and Tier II. Maharashtra, Uttar Pradesh, Haryana, Karnataka, and Gujarat are the major states with certified facilities. In India, several under-developed projects fall under the Tier III category. This trend is likely to continue during the forecast period, with many operators expected to shift to the Tier IV category with the growth in rack power density and critical applications. There are five data center facilities in India situated in Maharashtra, Tamil Nadu, and Andhra Pradesh, according to the uptime institute.

By IT Infrastructure
Servers
Storage
Network
By Electrical Infrastructure
UPS Systems
Generators
Transfer Switches and Switchgears
PDUs
Other Electrical Infrastructures
By Mechanical Infrastructure
Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Dry Coolers, & Condensers
Other Cooling Units
Racks
Others Mechanical Infrastructure
By General Construction
Core and Shell Development
Installation and Commissioning Services
Engineering and Building Designs
Physical Security
DCIM/BMS
By Tier Standards
Tier I &II
Tier III
Tier IV

INSIGHTS BY GEOGRAPHY
Maharashtra is a major data center development destination in India. Mumbai is the leading city for data center development, followed by Chennai. AWS, Microsoft, Alibaba, and Google have a physical presence in Mumbai. Colt DCS is developing the largest data center in Mumbai with a total power capacity of over 100 MW. Favorable government incentives and high IT connectivity are the major factors influencing data center development in Maharastra. Mumbai is a major location, with high submarine cable deployments that connect to key markets and regions across the world. In April 2020, Google announced an investment of around $400 million in the deployment of Blue-Raman cable, which connects India with Israel and Italy.

By Geography
India
Maharashtra
Tamil Nadu
Other States

INSIGHTS BY VENDORS
The India data center market consists of several IT, electrical, and mechanical infrastructure providers. Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Caterpillar, Schneider Electric, Vertiv, and Cummins are some major IT and support infrastructure providers. Infrastructure vendors are likely to offer innovative products that help to reduce power consumption and improve efficiency during the forecast period. The market is also likely to witness high demand for UPS and generators of varied capacities in small, medium, and large data centers. The demand for high-capacity systems with 2N redundant configuration is expected to increase over the next few years. The India data center market is witnessing intense competition among local service providers as several operators are rapidly expanding their operations. New market entrants are offering tough competition to established players.


Key Data Center Critical (IT) Infrastructure Providers
Arista Networks
Atos
Broadcom
Cisco Systems
Dell Technologies
Hewlett Packard Enterprise (HPE)
Huawei Technologies
IBM
Juniper Networks
Lenovo
NEC Corporation
NetApp

Key Data Center Support Infrastructure Providers
ABB
Blue Box (Swegon)
Caterpillar
Climaveneta Climate Technologies (Mitsubishi Electric)
Cummins
Delta Electronics
Eaton
KOEL (Kirloskar Group)
Legrand
NetRack Enclosures
Panduit
Rolls-Royce Power Systems
Reillo Elettronica (Riello UPS)
Rittal
Schneider Electric
Siemens
STULZ
Vertiv Group

Key Data Center General Construction Contractors
AECOM
DSCO Group
Larsen & Toubro (L&T)
Prasa
Sterling and Wilson (Shapoorji Pallonji Group)
Turner & Townsend
Vastunidhi

Key Data Center Investors
Airtel India (Nxtra Data)
CtrlS
NTT Global Data Centers (Netmagic)
Pi Data Centers
RackBank
Reliance Jio Infocomm
ST Telemedia Global Data Centres India
Sify Technologies
Web Werks
Yotta Infrastructure (Hiranandani Group)

New Entrants
Adani Group
Bridge Data Centres
Colt Data Centre Services (Colt DCS)
Equinix (GPX Global Systems)
Mantra Data Centers
Princeton Digital Group (PDG)

KEY QUESTIONS ANSWERED
1. What is the COVID-19 impact on the data center market in India?
2. What is the India data center market size and growth rate during the forecast period?
3. What are the key drivers and trends in the Indian data center market?
4. Who are the new entrants in the India data center market?
5. Which are the prominent destinations for data center investments in India?
6. Which security challenges are faced by data center infrastructure providers?


1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of The Study
4.4 Market Segments
4.4.1 Market Segmentation by Infrastructure
4.4.2 Market Segmentation by IT Infrastructure
4.4.3 Market Segmentation by Electrical Infrastructure
4.4.4 Market Segmentation by Mechanical Infrastructure
4.4.5 Market Segmentation by Cooling Systems
4.4.6 Market Segmentation by Cooling Techniques
4.4.7 Market Segmentation by General Construction
4.4.8 Market Segmentation by Tier Standards
4.4.9 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Introduction
7.1 Data Center Incentives In India
7.1.1 Maharashtra
7.1.2 Telangana
7.1.3 Uttar Pradesh
7.1.4 Andhra Pradesh
7.1.5 Gujarat
7.2 List Of Data Center Investment In India
7.3 Data Center Site Selection Criteria
8 Market Opportunities & Trends
8.1 5G Deployment Enhances The Edge Data Center Investments
8.2 Procurement Of Renewable Energy In Data Centers
8.3 Growing Rack Power Density
8.4 Increased Adoption Of Hyperconverged & Converged Infrastructure Platforms
9 Market Enablers
9.1 COVID-19 Impact On Data Center Market In India
9.2 Government To Grow Digital Economy & Data Center Investments
9.3 Rise In Investments From Colocation Providers
9.4 Cloud Adoption Increases Data Center Investments
9.5 Big Data & IoT Drive Data Center Investments
10 Market Restraints
10.1 Challenges Related to Power Reliability
10.2 Security Challenges In Data Centers
10.3 Lack of Strong Network Connectivity
10.4 Increasing Water Scarcity For Data Center Cooling
11 Market Landscape
11.1 Market Overview
11.2 Market Size & Forecast
11.3 Five Forces Analysis
11.3.1 Threat of New Entrants
11.3.2 Bargaining Power of Suppliers
11.3.3 Bargaining Power of Buyers
11.3.4 Threat of Substitutes
11.3.5 Competitive Rivalry
12 Infrastructure
12.1 Market Snapshot & Growth Engine
12.2 Market Overview
12.3 IT INFRASTRUCTURE
12.3.1 Market Overview
12.3.2 Market Size & Forecast
12.4 ELECTRICAL INFRASTRUCTURE
12.4.1 Market Overview
12.4.2 Market Size & Forecast
12.5 MECHANICAL INFRASTRUCTURE
12.5.1 Market Overview
12.5.2 Market Size & Forecast
12.6 GENERAL CONSTRUCTION
12.6.1 Market Overview
12.6.2 Market Size & Forecast
13 IT Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Server Infrastructure
13.2.1 Market Overview
13.2.2 Market Size & Forecast
13.3 Storage Infrastructure
13.3.1 Market Overview
13.3.2 Market Size & Forecast
13.4 Network Infrastructure
13.4.1 Market Overview
13.4.2 Market Size & Forecast
14 Electrical Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 UPS Systems
14.2.1 Market Overview
14.2.2 Market Size & Forecast
14.3 Generators
14.3.1 Market Overview
14.3.2 Market Size & Forecast
14.4 Transfer Switches & Switchgear
14.4.1 Market Overview
14.4.2 Market Size & Forecast
14.5 Power Distribution Units
14.5.1 Market Overview
14.5.2 Market Size & Forecast
14.6 Other Electrical Infrastructure
14.6.1 Market Overview
14.6.2 Market Size & Forecast
15 Mechanical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Cooling Systems
15.2.1 Market Overview
15.2.2 Market Size & Forecast
15.3 Racks
15.3.1 Market Overview
15.3.2 Market Size & Forecast
15.4 Other Mechanical Infrastructure
15.4.1 Market Overview
15.4.2 Market Size & Forecast
16 Cooling Systems
16.1 Market Snapshot & Growth Engine
16.2 CRAC & CRAH Units
16.2.1 Market Overview
16.2.2 Market Size & Forecast
16.3 Chiller Units
16.3.1 Market Overview
16.3.2 Market Size & Forecast
16.4 Cooling Towers, Condensers & Dry Coolers
16.4.1 Market Overview
16.4.2 Market Size & Forecast
16.5 Other Cooling Units
16.5.1 Market Overview
16.5.2 Market Size & Forecast
17 General Construction
17.1 Market Snapshot & Growth Engine
17.2 Core & Shell Development
17.2.1 Market Overview
17.2.2 Market Size & Forecast
17.3 Installation & Commissioning Services
17.3.1 Market Overview
17.3.2 Market Size & Forecast
17.4 Engineering & Building Design
17.4.1 Market Overview
17.4.2 Market Size & Forecast
17.5 Physical Security
17.5.1 Market Overview
17.5.2 Market Size & Forecast
17.6 DCIM/BMS
17.6.1 Market Overview
17.6.2 Market Size & Forecast
18 Tier Standards
18.1 Market Snapshot & Growth Engine
18.2 Overview of Tier Standards
18.3 TIER I & II
18.3.1 Market Overview
18.3.2 Market Size & Forecast
18.4 TIER III
18.4.1 Market Overview
18.4.2 Market Size & Forecast
18.5 TIER IV
18.5.1 Market Overview
18.5.2 Market Size & Forecast
19 Geography
19.1 Investment: Snapshot & Growth Engine
19.2 Area: Snapshot & Growth Engine
19.3 Power Capacity: Snapshot & Growth Engine
20 Maharashtra
20.1 Market Overview
20.2 Investment
20.2.1 Market Size & Forecast
20.3 Area
20.3.1 Market Size & Forecast
20.4 Power Capacity
20.4.1 Market Size & Forecast
21 Tamil Nadu
21.1 Market Overview
21.2 Investment
21.2.1 Market Size & Forecast
21.3 Area
21.3.1 Market Size & Forecast
21.4 Power Capacity
21.4.1 Market Size & Forecast
22 Other States
22.1 Market Overview
22.2 Investment
22.2.1 Market Size & Forecast
22.3 Area
22.3.1 Market Size & Forecast
22.4 Power Capacity
22.4.1 Market Size & Forecast
23 Competitive Landscape
23.1 IT Infrastructure
23.2 Support Infrastructure
23.3 Data Center Investors
24 Prominent Critical (IT) Infrastructure Providers
24.1 Arista Networks
24.1.1 Business Overview
24.1.2 Product Offerings
24.2 ATOS
24.2.1 Business Overview
24.2.2 Product Offerings
24.3 Broadcom
24.3.1 Business Overview
24.3.2 Product Offerings
24.4 CISCO Systems
24.4.1 Business Overview
24.4.2 Product Offerings
24.4.3 Key News
24.5 Dell Technologies
24.5.1 Business Overview
24.5.2 Product Offerings
24.6 Hewlett Packard Enterprise (HPE)
24.6.1 Business Overview
24.6.2 Product Offerings
24.7 Huawei Technologies
24.7.1 Business Overview
24.7.2 Product Offerings
24.7.3 Key News
24.8 International Business Machines (IBM)
24.8.1 Business Overview
24.8.2 Product Offerings
24.9 Juniper Networks
24.9.1 Business Overview
24.9.2 Product Offerings
24.10 Lenovo
24.10.1 Business Overview
24.10.2 Product Offerings
24.11 NEC Corporation
24.11.1 Business Overview
24.11.2 Product Offerings
24.12 Netapp
24.12.1 Business Overview
24.12.2 Product Offerings
25 Prominent Support Infrastructure Providers
25.1 ABB
25.1.1 Business Overview
25.1.2 Product Offerings
25.2 BLUE BOX (SWEGON)
25.2.1 Business Overview
25.2.2 Product Offerings
25.3 Caterpillar
25.3.1 Business Overview
25.3.2 Product Offerings
25.4 Climaveneta Climate Technologies (Mitsubishi Electric)
25.4.1 Business Overview
25.4.2 Product Offerings
25.5 Cummins
25.5.1 Business Overview
25.5.2 Product Offerings
25.6 Delta Electronics
25.6.1 Business Overview
25.6.2 Product Offerings
25.7 Eaton
25.7.1 Business Overview
25.7.2 Product Offerings
25.8 KOEL (KIRLOSKAR GROUP)
25.8.1 Business Overview
25.8.2 Product Offerings
25.9 Legrand
25.9.1 Business Overview
25.9.2 Product Offerings
25.10 Netrack Enclosures
25.10.1 Business Overview
25.10.2 Product Offerings
25.11 Panduit
25.11.1 Business Overview
25.11.2 Service Offerings
25.12 Rolls-Royce Power Systems
25.12.1 Business Overview
25.12.2 Product Offerings
25.13 Riello Elettronica (RIELLO UPS)
25.13.1 Business Overview
25.13.2 Product Offerings
25.14 Rittal
25.14.1 Business Overview
25.14.2 Product Offerings
25.15 Schneider Electric
25.15.1 Business Overview
25.15.2 Product Offerings
25.15.3 Key News
25.16 Siemens
25.16.1 Business Overview
25.16.2 Product Offerings
25.17 STULZ
25.17.1 Business Overview
25.17.2 Product Offerings
25.18 Vertiv Group
25.18.1 Business Overview
25.18.2 Product Offerings
26 Prominent Construction Contractors
26.1 AECOM
26.1.1 Business Overview
26.1.2 Service Offerings
26.2 DSCO Group
26.2.1 Business Overview
26.2.2 Service Offerings
26.3 Larsen & Toubro (L&T)
26.3.1 Business Overview
26.3.2 Service Offerings
26.4 PRASA
26.4.1 Business Overview
26.4.2 Product Offerings
26.5 Sterling And Wilson (Shapoorji Pallonji Group)
26.5.1 Business Overview
26.5.2 Service Offerings
26.6 Turner & Townsend
26.6.1 Business Overview
26.6.2 Service Offerings
26.7 Vastunidhi
26.7.1 Business Overview
26.7.2 Service Offerings
27 Prominent Data Center Investors
27.1 Airtel India (NXTRA DATA)
27.1.1 Business Overview
27.1.2 Service Offerings
27.1.3 Key News
27.2 CTRLS
27.2.1 Business Overview
27.2.2 Service Offerings
27.3 NTT Global Data Centers (NETMAGIC)
27.3.1 Business Overview
27.3.2 Service Offerings
27.3.3 Key News
27.4 PI Data Centers
27.4.1 Business Overview
27.4.2 Service Offerings
27.4.3 Key News
27.5 Rackbank
27.5.1 Business Overview
27.5.2 Service Offerings
27.6 Reliance Jio Infocomm
27.6.1 Business Overview
27.6.2 Service Offerings
27.7 ST Telemedia Global Data Centres India
27.7.1 Business Overview
27.7.2 Service Offerings
27.8 Sify Technologies
27.8.1 Business Overview
27.8.2 Service Offerings
27.8.3 Key News
27.9 Web Werks
27.9.1 Business Overview
27.9.2 Service Offerings
27.9.3 Key News:
27.10 Yotta Infrastructure (Hiranandani Group)
27.10.1 Business Overview
27.10.2 Service Offerings
27.10.3 Key News
28 New Entrants
28.1 Adani Group (ADANICONNEX)
28.1.1 Business Overview
28.1.2 Service Offerings
28.1.3 Key News
28.2 Bridge Data Centres
28.2.1 Business Overview
28.2.2 Service Offerings
28.3 Colt Data Centre Services (COLT DCS)
28.3.1 Business Overview
28.3.2 Service Offerings
28.3.3 Key News
28.4 Equinix (GPX Global Systems)
28.4.1 Business Overview
28.4.2 Service Offerings
28.4.3 Key News
28.5 Mantra Data Centers
28.5.1 Business Overview
28.5.2 Service Offerings
28.5.3 Key News
28.6 Princeton Digital Group (PDG)
28.6.1 Business Overview
28.6.2 Service Offered
28.6.3 Key News
29 Report Summary
29.1 Key Takeaways
30 Quantitative Summary
30.1 Data Center Market In India
30.1.1 Overall Market
30.1.2 Overall Market (Including IT Infrastructure)
30.1.3 Infrastructure: Market Size & Forecast
30.1.4 IT Infrastructure: Market Size & Forecast
30.1.5 Electrical Infrastructure: Market Size & Forecast
30.1.6 Mechanical Infrastructure: Market Size & Forecast
30.1.7 Cooling Systems: Market Size & Forecast
30.1.8 General Construction: Market Size & Forecast
30.1.9 Tier Standards: Market Size & Forecast
30.2 Geography
30.2.1 Investment By Geography
30.2.2 Investment By Area
30.2.3 Investment By Power Capacity
30.3 Maharashtra
30.3.1 Market Size & Forecast
30.4 Tamil Nadu
30.4.1 Market Size & Forecast
30.5 Other States
30.5.1 Market Size & Forecast
31 Appendix
31.1 Abbreviations

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