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

India Data Center Market Size was valued at USD 6.6 Billion in 2024 and is projected to grow at a CAGR of 12.8% to reach USD 19.8 Billion by 2034.

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.

Data centers are designed to support business By General Infrastructures and activities like File sharing and email, By General Infrastructures for IT Infrastructure ivity, Relationship management with customers (CRM) , Databases and enterprise resource planning (ERP) ; Machine learning, artificial intelligence, and big data; Services for collaboration, communications, and virtual desktops.

India's data center market is expanding. Data centers provide economic activity, national security, and internet infrastructure. India has 950 MW of data center capacity as of this year; by next two years, that capacity is predicted to increase to 1800 MW. 60% of total data centers are in Mumbai, Chennai, Delhi and Bangalore. Mumbai emerged as the third biggest data centre market in the Asia-Pacific (APAC) region in this year.

India Data Center Market Drivers:   

Digital Transformation and Growing Internet Usage

• India's internet penetration is rapidly increasing, leading to a surge in data generation and consumption. This exponential growth is driven by factors like increasing affordability of smartphones and data plans, government initiatives to promote broadband connectivity, and a growing young population comfortable with digital technologies.  As a result, Indians are consuming more online content, using social media platforms, engaging in e-commerce, and utilizing cloud-based services, all of which generate significant amounts of data. This data needs to be stored, processed, and analysed, driving the demand for robust data center infrastructure.

Cloud Adoption and Growth of Digital Services

• One important factor is the speed at which companies of all sizes are adopting cloud computing. To store and manage data for cloud services, dependable and expandable data centers are needed.
• Because they need substantial infrastructure for data processing and storage, the thriving Indian e-commerce industry, online learning environments, and other digital service providers all contribute to the growth of the data center market.

Big Data and Artificial Intelligence (AI)

• The growing importance of big data analytics and AI By General Infrastructures in various sectors is fuelling the demand for high-performance computing resources and sophisticated data storage solutions offered by data centers. Processing large datasets to derive insightful information that can guide corporate choices, boost IT Infrastructure and spur innovation is known as big data analytics. Large volumes of data analysis and extensive algorithm training are necessary for AI By General Infrastructures like machine learning and deep learning.

Restrains in the India Data Center Market:

High Upfront Costs

• Large upfront expenditures in land acquisition, building, IT equipment, and power infrastructure are necessary for the construction and upkeep of data centers. This could be a barrier for newer, smaller competitors.

Power Supply Issues and Shortage

• Reliable and uninterrupted power supply is crucial for data center operations. However, India faces challenges with power grids and occasional outages. Additionally, the growing demand for data center power can strain existing power infrastructure in some regions.

Key Opportunities in India Data Centre Market:

Increase in Hyperscale and Colocation Data Centers:

• There will likely be a sharp increase in demand for colocation services, which let companies rent resources and space inside data centers. This provides businesses of all sizes with an affordable and scalable option.
• Large-scale facilities run by well-known cloud providers like AWS and Microsoft, known as hyperscale data centers, are likewise expected to see rapid expansion in India. These meet the ever-growing data requirements of hyperscale cloud providers and large corporation.

Focus on Sustainability and Green Data Centers

• The need for sustainable data center solutions is growing as environmental concerns do. This offers a chance for businesses that can develop cutting-edge cooling technology, use renewable energy sources, and create energy-efficient data center designs.

Adoption of Tier III and Tier IV Data Centers

There will likely be a greater need for high-availability data centers with Tier III and Tier IV certifications as companies become more dependent on digital infrastructure. By providing increased redundancy and uptime, these data centers reduce the risk of outage and ensure business continuity.

Management of Data Centers with AI and Machine Learning

• By incorporating AI and ML into data center management systems, operations may be optimized, energy efficiency can be increased, and any problems can be identified before they arise. A significant differentiation for data center providers will be this.

Skilled Workforce Development

• To handle complicated infrastructure, the data center sector needs a trained workforce. To close the talent gap, training organizations and business leaders can work together to create specialized programs for data center technicians and managers.

India's Data Center Market is segmented based on based on by IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, General Infrastructure, and Tier Standards.

IT Infrastructure Insight

• Servers - These contain the processing power needed to manipulate, retrieve, and store data. Server deployments are expanding in India as a result of growing demand for big data analytics and cloud computing.
• Storage – Data centers must have effective storage options. To meet the ever-increasing data volumes, this segment includes disk storage arrays, solid-state drives (SSDs), and storage area networks (SANs).
• Network– For data to be transferred both inside and outside of the data center, reliable, high-bandwidth networks are necessary. Switches, routers, firewalls, and cabling infrastructure are all included in this section.

Electrical Infrastructure Insights

• UPS Systems– Uninterruptible Power Supplies, or UPSs, are designed to supply backup power in the event of a primary power failure, guaranteeing the uninterrupted operation of vital IT equipment.
• Generators - In the event of a protracted power outage, generators serve as a backup power source.
• Transfer Switches and switchgear - These control the smooth transition of power between the backup and main sources.
• Rack PDU- Effectively distribute electricity among server racks.

Mechanical Infrastructure Insights

• Cooling Systems - It is essential to keep the environment cold and managed to ensure that equipment operates efficiently and to avoid overheating, which can damage servers and cause downtime. The hot and muggy weather in India makes effective cooling systems even more crucial for data centers.   
• CRAC & CRAH units - Water is cooled by a refrigeration cycle in a chiller and then pumped to the CRAH units positioned throughout the data center via pipelines.  
• Chiller Units - These are large industrial machines that generate chilled water used by CRAH units for cooling. Chillers use a refrigeration cycle to remove heat from the water, which is then circulated through pipes to the CRAH units located throughout the data center
• Cooling Towers Chiller equipment in certain data centers rejects heat from the chilled water cycle using cooling towers.
• Evaporation and air circulation are the two main methods used by cooling towers to lower the water's temperature. However, cooling towers can use a lot of water, which poses a risk in areas of India where water is scarce.
• Dry Coolers, & Condensers - Some data centers are using dry coolers as an alternative to cooling towers. These cool the chilled water by using ambient air, not water. Although dry coolers use less water, they might not work as well in all types of climates, particularly on really hot days.  

By General Infrastructure Insights

• Building Development - This encompasses the entire construction process of the data center facility, including civil works like foundation laying, structural construction, and internal fit-out. Special considerations are made for factors like seismic stability, fire safety, and efficient airflow management.
• Installation and Commissioning Services - Once the building is constructed, specialized companies handle the installation and testing of all IT, electrical, and mechanical equipment within the data center. This ensures everything functions seamlessly before going live.   
• Building Designs The design of a data center is more than just its physical layout. Layouts designed by specialized firms maximize power distribution, ventilation control, and space utilization. During the design phase, elements like containment of hot and cold aisles, effective cable routing, and adaptability for future extension are all taken into account.  
• Physical Security Digital safeguards are not the only way to secure data. Protecting sensitive data kept in the data center requires physical security.
• High perimeter fence, multi-factor authentication access control systems, round-the-clock security guards, video surveillance systems, and intrusion detection technologies are some examples of this.
• DCIM & BMS- These software programs provide real-time monitoring and administration of every part of the infrastructure, functioning as the brains of a data center. DCIM monitors variables like power usage, server health, and cooling system performance with an emphasis on IT and power infrastructure. It facilitates the best use of available resources and anticipates possible problems before they arise. Access control systems, lighting, humidity, and temperature are all under the supervision of the building management system (BMS). It guarantees the best circumstances for machinery performance and energy economy.   

Tier Standards Insights

• Tier I &II Basic with 99.671% uptime, suitable for less critical applications. Tier II - Redundant components with 99.741% uptime, suitable for moderate uptime requirements..
• Tier III - Provides a notable increase in dependability. Essential parts (cooling, electricity, and distribution channels) are made to be changed or maintained without interfering with current operations. 99.982% Uptime Expectation (about 1.6 hours of annual downtime). Suitability: Perfect for high availability mission-critical applications including online transaction processing, cloud service providers, and financial institutions. Because it places a strong focus on uptime and reliability, Tier III is the most often used Tier standard for enterprise data centers in India..
• Tier IV Offers the maximum degree of fault tolerance and redundancy. Within the infrastructure of data centers, there isn't a single point of failure. The data center continues to function even in the event of a crucial component failure. Expected Uptime: 99.995%, with an annual downtime of about 30 minutes.

India Data Centre Market Report Scope:

Attribute	Details
Market Size 2024	US$ 6.6 million
Projected Market Size 2034	US$ 19.8 million
CAGR Growth Rate	12.8%
Base year for estimation	2023
Forecast period	2024-2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Market Segmentation	By IT Infrastructure - Servers, Storage, and Network By Electrical Infrastructure - UPS Systems, Generators, Transfer Switches and switchgear, Rack PDU By Mechanical Infrastructure - On-Premises, and Cloud-Based By General Infrastructure - Social Reporting, Environmental Reporting, and Governance Reporting By Tier Standards - Tier I &II, Tier III, and Tier IV
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the India Data Center Market report based on By IT Infrastructure, By Electrical Infrastructure, By Mechanical Infrastructure, By General Infrastructure, and By Tier Standards:

India Data Center Market, By IT Infrastructure:

• Servers
• Storage
• Network

India Data Center Market, By Electrical Infrastructure:

• UPS Systems
• Generators
• Transfer Switches and switchgear
• Rack PDU

India Data Center Market, By Mechanical Infrastructure:

• Cooling Systems
• CRAC & CRAH units
• Chiller Units
• Cooling Towers
• Dry Coolers & Condensers

India Data Center Market, By General Infrastructure:

• Building Development
• Installation and Commissioning Services
• Building Designs
• Physical Security
• DCIM & BMS

India Data Center Market, By Tier Standards:

• Tier I &II
• Tier III,
• Tier IV

The key players operating the India Data Centre Market include CtrlS Datacenters Ltd, Nxtra Data Limited, STT GDC India Private Limited, Netmagic IT Services Private Limited, ESDS Software Solution Pvt. Ltd., Sify Technologies Limited; Tata Communications Limited, GPX India Pvt Ltd, Web Werks India Pvt. Ltd., NxtGen.

• In January 2024, Global IT infrastructure and services company NTT launched its new data center campus in India. The campus, spanning six acres, will support a planned capacity of 52.8 MW critical IT load in two data centres.
• In January 2024, Digital Connexion, a joint venture between Mukesh Ambani’s Reliance Industries, Canada's Brookfield and US-based Digital Realty, on Friday launched its first data centre in India, at Ambattur in Chennai. The centre started with a processing capacity of 20 megawatt (Mw) and will expand it to 100 Mw, making it one of the largest such facilities in the country. Digital Connexion is planning to start a 40 Mw data centre in Mumbai, a top company executive told Business Standard.
• In January 2024, U.S-based risk management solutions provider Archer Technologies, announced its new data center in Bengaluru, India on Monday. The new software-as-a-service (SaaS) data center in India aims to provide local customers with a secure, highly available, and scalable platform for managing risks.

• CtrlS Datacenters Ltd
• Nxtra Data Limited
• STT GDC India Private Limited
• Netmagic IT Services Private Limited
• ESDS Software Solution Pvt. Ltd.
• Sify Technologies Limited
• Tata Communications Limited
• GPX India Pvt Ltd
• Web Werks India Pvt. Ltd.
• NxtGen Data Center and Cloud Services Private Limited