India Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government

India Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030

The India Data Center Market size was valued at USD 3.30 billion in 2023, and is predicted to reach USD 7.40 billion by 2030, at a CAGR of 12.2% from 2024 to 2030.

The efforts of major companies in India to expand their operations to meet the rising demand for data storage, driven by significant digitization efforts, are crucial for market growth. Recently, OVHcloud and Digital Realty launched their first centers in India, in Mumbai and Chennai, respectively. These strategic expansions aim to cater to India's evolving digital landscape and increasing digital needs. The Mumbai data center is set to provide open, trusted, sovereign, and sustainable cloud solutions to Indian businesses, while the Chennai center will support India's digital evolution with high-density infrastructure. Reflecting India's growing demand for digital capacity, 5G, AI, and other emerging technologies, these expansions demonstrate a concerted effort to meet the country's burgeoning digital requirements and aid its digital transformation journey.

However, the data center market faces significant challenges, mainly due to the substantial initial investment required and strict environmental regulations. Establishing and maintaining network infrastructure involves considerable upfront financial commitments, posing obstacles for smaller enterprises and startups. Additionally, ongoing compliance with environmental standards necessitates continuous investment in energy-efficient technologies hinders the overall market growth.

On the other hand, integrating edge computing into market operations offers promising opportunities for industry growth. By reducing latency and enabling real-time processing, edge computing supports applications such as the Internet of Things (IoT) and Augmented Reality (AR), reducing the load on centralized cloud data centers while providing scalability and flexibility. This decentralized approach enhances security by processing sensitive data locally and aligns with evolving digital landscapes, creating diverse opportunities for network infrastructure providers. Recent investments in startups such as Armada indicate growing interest in edge computing solutions, demonstrating efforts to address connectivity challenges and bridge the digital divide.

Segment Overview

The India Data Center industry is segmented based on type, deployment model, enterprise size, and end users.
Based on type, the market is segmented into colocation, hyperscale, edge, and others.
Based on deployment model, the market is divided into on-premise, cloud, and hybrid.
Based on enterprise size, the market is bifurcated into large enterprise, small and medium size enterprise.
Based on the end users, the market is divided into BFSI, IT and telecom, government, energy and utilities, and other end users.

Key Market Players

Leading players operating in the India data center industry include:
• Amazon.com Inc.
• IBM Corporation
• Microsoft Corporation
• Cisco System Inc.
• Oracle Corporation
• SAP SE
• Hewlett Packard Enterprise Company
• NTT Communications Corporation
• Equinix Inc.
• Digital Reality Trust Inc

KEY BENEFITS
• The India data center market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the India data center market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.