Mordor Intelligence has published a new report on the India Data Center Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
India Data Center Market Overview
India data center market is on a strong growth trajectory, with its capacity projected to double from 3.31 thousand megawatts (MW) in 2025 to 6.69 thousand MW by 2030, reflecting a compound annual growth rate (CAGR) of 15.11%. Colocation revenue is also expected to more than double, from USD 2,337.9 million in 2025 to USD 4,931.8 million in 2030, at a CAGR of 16.10%. This growth is fueled by increasing digital adoption, supportive government policies, and rising demand for reliable data storage and processing facilities.
India Data Center Market Key Trends
Government Incentives and Policy Support
State governments in India are offering various incentives to attract data center investments. These include land value exemptions up to 50%, complete stamp duty exemptions, and substantial reimbursements on interest payments. For instance, the Uttar Pradesh government provides a 100% exemption on electricity and transmission charges to encourage data center growth.
Rise of Tier 3 and Tier 4 Data Centers
There is a significant shift towards Tier 3 and Tier 4 data centers, which offer enhanced reliability and disaster recovery capabilities. As of 2022, India had 77 Tier 3 certified data centers. The Tier 3 segment accounted for approximately 80% market share in 2024, with major operators like STT Telemedia, NXTRA, and NTT Ltd leading the way. Tier 4 data centers are experiencing rapid growth, projected to expand at approximately 30% CAGR from 2024 to 2029.
Digital Content Consumption
The streaming and digital content sector is a significant driver of data center growth. India’s OTT market had 423.8 million subscribers in 2022, including 119 million paid subscribers. Disney+ Hotstar led with over 40 million subscribers, followed by Prime Video with 20 million and Netflix with 6.5 million as of October 2023. This surge in digital content consumption is compelling data center operators to enhance their infrastructure capabilities.
Broadband Expansion and Fiber Optic Adoption
Broadband connections in India rose from 6.1 crore in March 2014 to 81.62 crores in September 2022, growing by 1238%. The BharatNet project aims to provide broadband access to all 2.6 lakh Gram Panchayats (GPs) in the country. As of October 2022, 6,00,898 km of Optical Fibre Cable had been laid under the project, connecting 1,90,364 GPs.
Sustainability and Technological Advancements
Data center operators are increasingly implementing innovative solutions such as fuel cell technology to reduce carbon emissions. The Department of Telecom has authorized comprehensive telecom development packages, including the installation of new 4G towers and extensive optical fiber networks, showcasing the industry’s commitment to building robust digital infrastructure.
India Data Center Market Segmentation:
By Hotspot Location
- Bangalore
- Chennai
- Hyderabad
- Mumbai
- NCR
- Pune
- Rest of India
By Data Center Size
- Small
- Medium
- Large
- Massive
- Mega
By Tier Type
- Tier 1 and 2
- Tier 3
- Tier 4
By Absorption
- Utilized
- Non-Utilized
By Colocation Type
- Hyperscale
- Retail
- Wholesale
By End User
- BFSI
- Cloud
- E-Commerce
- Government
- Manufacturing
- Media & Entertainment
- Telecom
- Other End User
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Key Players
Equinix Inc.: Operates data centers in Mumbai, offering global interconnection services and supporting cloud and enterprise clients.
NTT Ltd: One of the leading colocation providers in India, with major data center facilities across Mumbai, Chennai, and Bengaluru.
Nxtra Data Ltd: A subsidiary of Bharti Airtel, it is expanding rapidly with plans to double its capacity to nearly 400 MW by 2027.
Sify Technologies Ltd: Operates a nationwide network of data centers and is focused on serving enterprise and digital transformation needs.
STT GDC Pte Ltd: Through STT GDC India, it operates 18 Tier 3 certified data centers, holding a strong position in the Indian market.
Conclusion
India’s data center market is poised for significant growth, driven by increasing digital adoption, supportive government policies, and rising demand for reliable data storage and processing facilities. The shift towards Tier 3 and Tier 4 data centers, expansion of broadband and fiber optic networks, and focus on sustainability and technological advancements are key trends shaping the market. With major players investing in large-scale projects and the government’s continued support, India is well-positioned to become a global data center powerhouse by 2030.
Industry Related Reports
United Kingdom Data Center Market: The United Kingdom Data Center Market is segmented by Hotspot (London), by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4) and by Absorption (Non-Utilized, Utilized).
Data Center Market: The Data Center Market is segmented by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Absorption (Non-Utilized, Utilized) and by Region (APAC, Africa, Europe, Middle East, North America, South America).
Mega Data Center Market: The report covers Global Mega Data Center Companies and the market is Segmented by Solution (Storage, Networking, Servers, Security, and Other Solutions), End-user (BFSI, Telecom and IT, Government, Media and Entertainment, and Other End-Users), and Geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).
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