India Data Center Market I Growth, Trends, and Forecast to 2030

Data centers are the backbone of India's rapidly growing digital economy, supporting a vast array of services for enterprises and government initiatives. Despite their critical role, India hosts only a small fraction of the world's data centers approximately 300 out of nearly 11,000 globally, with major cities such as Mumbai, Delhi NCR, and Bengaluru accounting for 55% of total data center.

Over the past five years, India’s data center industry has grown by 15-20% annually. This growth is driven by government initiatives promoting digitalization across various sectors, including e-commerce, digital payments, cloud computing, the rollout of 4G/5G networks, and the widespread use of affordable smartphones along with increasing digitalization, the expansion of cloud services, and the rise of hyperscale cloud providers.

Drivers

The growing mobile data use and internet penetration of India is positively impacting the usage of various online services including e commerce, online learning, telehealth, entertainment all of which rest on robust data center infrastructure.

The increase in internet access has resulted in more people engaging in online activities such as watching videos, playing games, and consuming media, and this has raised the need for more data centers to accommodate these activities in future.

In order to facilitate such growth, the Indian government has introduced several incentive measures to support the growth of the data center industry. The Data Center Policy formulated by the Ministry of Electronics and IT (MeitY) provides several advantages, such as awarding the “Infrastructure status” to the data center industry, creation of an favorable environment for the establishment of data center businesses, and the establishing of Data Center Economic Zones.

Additionally, incentives such as power grants, taxes waivers, and even land allocation are offered with an aim of attracting investment in the data center industry. The ‘Made in India’ policy also encourages the growth of local technology, development of local technologies and large scale production of IT and data center equipment for the local market so as to reduce import reliance and promote domestic manufacture.

Restraints

High energy prices is one of the major challenges that the data centre industry faces, since power consumption forms one of the big operating costs for the data centers. High volatility in electricity prices heightens the challenge, and companies like Equinix, for example, feel growing pressure on the management of efficient power in order to maintain a profit level.?

Infrastructure issues persist in rural areas, as well. There are concerns of electricity, network connectivity, and a network of potable water supply. Such a discrepancy in the development of infrastructure creates some impediments to the smooth functioning and growth of data centers.

Regulatory and compliance barriers pose another challenge. The regulatory scenario in the country remains complex-one that has arisen with environmental legislation, land acquisition procedures, and adherence to legal compliant requirements-all adding to the operational tension. The regulatory framework of the industry is still evolving, creating demands for clarity and standardization to simplify data center operations.

Market Segmentation

By Type:

• Hyperscale Data centers: These are large-scale facilities typically used by cloud providers like Amazon, Google, and Microsoft to handle massive amounts of data. Hyperscale data centers offer superior scalability and cost-efficiency, and their demand is growing rapidly with the rise of cloud services.
• Colocation Data centers: Colocation facilities allow multiple organizations to lease space, equipment, and bandwidth, sharing operational costs. These data centers are favored by businesses that do not want to manage their own infrastructure.
• Enterprise Data centers: These are privately owned facilities that support individual businesses' IT needs. Despite the growth of cloud and colocation services, many enterprises continue to maintain on-premises data centers for reasons related to security and control.
• Edge Data centers: Designed to process data closer to the source, edge data centers are increasingly important in supporting low-latency applications like autonomous vehicles and IoT devices.

Trends and Developments

• The Maharashtra state government in October 2024, has approved the establishment of a new large scale sustainable data center project. The Green Integrated Data Centre Parks project plans to build several data center parks in and around Mumbai, totaling 1.5 GW of IT capacity.
• As of October 2024, Colt DCS is in advanced talks with local real estate developer RMZ Corp to jointly invest over USD 1 billion in developing data centers across key Indian cities, starting with Mumbai and Chennai.
• Ansys Software has officially inaugurated its newest high-performance computing (HPC) data center, in October 2024.
• NSE announced in September 2024, its plans to triple its capacity to 4,000 racks in the next three years, and that the expansion will be located in the NSE's existing building at Exchange Plaza, Bandra Kurla.
• As of October 2024, AWS is reportedly in the final stages of buying 40 to 45 acres of land in Palava City, just outside of Mumbai, for the build of a data center. The tech giant is set to buy the land for around Rs 500-600 crore (USD 60 million - USD 71 million) from Macrotech Developers.

The new report from Blackridge Research on the India data center market provides comprehensive qualitative and quantitative analyses along with a deep insight into the current and future of the market.

What Do We Cover in the Report?

Data Center Market Drivers & Restraints

The study covers all the major underlying market dynamics that help the market develop and grow, as well as the factors that constrain India market growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.

Data Center Market Analysis

This report discusses the market overview, the latest updates, critical commercial developments and structural trends, and government policies and regulations.

Data Center Market Size and Demand Forecast

The report provides the India data center market size and demand forecast until 2030, including year-on-year (YoY) growth rates and CAGR.

Data Center Industry Analysis

The report examines the critical elements of the data center supply chain, its structure, and the participants.

The report uses the PESTEL framework to assess the data center industry's competition and profitability.

Data Center Market Segmentation & Forecast

The report dissects the India data center market into various segmentbased on type (Hyperscale Data Centers, Colocation Data Centers, Enterprise Data Centers and Edge Data Centers).

A detailed summary of the current scenario, recent developments, and market outlook will be provided for each market segment.

Further, data center market share, size, and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Key Company Profiles

This report presents detailed profiles of key companies in the data center industry, such as Nxtra Ltd, Iron Mountain, Zenlayer Networks India Pvt Ltd, Macquaire, Oracle, Amazon Web Services (AWS), Google, Microsoft etc. In general, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements related to the data center project.

The study also discusses the strategies adopted by leading data center and AI companies.

Executive Summary

The Executive Summary will be packed with charts, infographics, and forecasts. This chapter summarizes the report's findings crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.

This product will be delivered within 5-7 business days.