India Data Center Market is projected to grow at a CAGR of 12.8%to reach US$ 19.8 billion by 2034

Published Date: June 2024

India Data center is a physical facility that organizations use to house their critical By General Infrastructures and data. A network of processing and storage resources forms the foundation of a data center's architecture, facilitating the delivery of shared data and By General Infrastructures. Servers, storage systems, firewalls, routers, switches, and By General Infrastructure-delivery controllers are the main elements of a data center design. Given the importance of IT operations, businesses incorporate infrastructure and backup parts for power supplies, data connections, environmental controls, and different security devices. It is a facility that unifies the common IT equipment and processes of a company in order to store, process, and distribute data and By General Infrastructures. Compute, storage, and network are the three main IT Infrastructure types that make up a data center. But in a contemporary DC, these are merely the tip of the iceberg. The primary difference is that data centers enable you to run on numerous nodes with externalized data stores, whereas servers are limited to running on a single node with internalized data stores. India Data Center Market was valued at US$ 6.6 billion in 2024 and is projected to grow at a CAGR of 12.8%to reach US$ 19.8 billion by 2034.

The report "India Data Center Market, By IT Infrastructure (Servers, Storage, and Network), By Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, Rack PDU, and Other Electrical Infrastructures), By Mechanical Infrastructure (Cooling Systems, CRAC & CRAH units, Chiller Units, Cooling Towers, Dry Coolers, & Condensers, Racks, and Others Mechanical Infrastructure), By General Infrastructure (Building Development, Installation and Commissioning Services, Building Designs, Physical Security, and DCIM & BMS), and By Tier Standards (Tier I &II, Tier III, and Tier IV) - Trends, Analysis and Forecast till 2034"

Key Highlights:

  • Colocation providers, such as Netmagic, CtrlS, Sify, and NxtGen, have declared big investment plans in India. For example, CtrlS has introduced a US$ 73-million project in Bengaluru and will be adding new data centers in Mumbai and Hyderabad within 3 years

Analyst View:

Big data and IoT leads to increase in data center investment, thus driving growth of the data center market. Migration to cloud-based business operations and increased adoption of converged and hyper-converged infrastructure platforms is expected to contribute to the growth of the data center market in India over the forecast period. Further growing government initiatives for supporting data center development in the form of tax incentives is also projected to propel the growth of the market in the near future. Several small enterprises in India prefer managed cloud or hosting services rather than colocation owing to low number of standalone colocation services in India than managed colocation or managed to host services. Sectors such as logistics, BFSI, transportation, e-commerce, and government agencies are experiencing high demand for colocation services. Global enterprises involved in establishing a physical presence in the Indian market are collocating facilities in the country. Hence, the growth in the investment from global colocation service providers is probable to influence the India data center market over the forecast period. Gujarat, Telangana, Andhra Pradesh, and Maharashtra governments are offering significant incentives for data center development. For instance, the government of Maharashtra stated the GST refund for a maximum period of 10 years for the companies that participate in the development of integrated facilities. Similarly, the government of Andhra Pradesh declared 50% reimbursement of SGST on the purchase of equipment and raw materials for three years from the date of approval of the project. Therefore, growing government support is projected to influence data center development in India.

Browse 60 market data tables* and 35 figures* through 140 slides and in-depth TOC on “India Data Center Market”, By IT Infrastructure (Servers, Storage, and Network), By Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, Rack PDU, and Other Electrical Infrastructures), By Mechanical Infrastructure (Cooling Systems, CRAC & CRAH units, Chiller Units, Cooling Towers, Dry Coolers, & Condensers, Racks, and Others Mechanical Infrastructure), By General Infrastructure (Building Development, Installation and Commissioning Services, Building Designs, Physical Security, and DCIM & BMS), and By Tier Standards (Tier I &II, Tier III, and Tier IV) - Trends, Analysis and Forecast till 2034"

Key Market Insights from the report:        

The India data center market accounted for US$ 2.26 billion in 2018 and is projected to register a moderate CAGR over the forecast period. The market report has been segmented on the basis of IT infrastructure, electrical infrastructure, mechanical infrastructure, general infrastructure, and tier standards.

  • By IT infrastructure, the market is classified into servers, storage, and network
  • By electrical infrastructure, the market is segmented into UPS systems, generators, transfer switches and switchgear, rack PDU, and other electrical infrastructures
  • By mechanical infrastructure, the market is segmented into cooling systems, CRAC & CRAH units, chiller units, cooling towers, dry coolers, & condensers, racks, and other mechanical infrastructure
  • By general infrastructure, the market is segmented into building development, installation and commissioning services, building designs, physical security, and DCIM & BMS
  • By tier standards, the investment in Tier IV facilities is projected to grow in India owing to increasing focus on building highly efficient and reliable data centers.

Competitive Landscape:

The prominent player operating in the India data center market includes Fujitsu, Honeywell, NEC, IBM Corp., Siemens AG, Johnson Controls, Inc., Hikvision, Dahua Technology, and Schneider Electric, Inc.

The market provides detailed information regarding the industrial base, productivity, strengths, manufacturers, and recent trends which will help companies enlarge the businesses and promote financial growth. Furthermore, the report exhibits dynamic factors including segments, sub-segments, regional marketplaces, competition, dominant key players, and market forecasts. In addition, the market includes recent collaborations, mergers, acquisitions, and partnerships along with regulatory framework across different regions impacting the market trajectory. Recent technological advances and innovations influencing the global market are included in the report.

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