India Data Center Market Report 2026–2031: Investment Analysis & Growth Opportunities

India Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

INDIA DATA CENTER MARKET SIZE & OUTLOOK

The India data center market size was valued at USD 9.79 billion in 2025 and is expected to reach USD 21.03 billion by 2031, growing at a CAGR of 13.59% during the forecast period. India is emerging as one of the most dynamic data center investment markets in the APAC region, supported by accelerating cloud adoption, rising data consumption, AI-driven compute requirements, and enterprise digital transformation.

Market growth is underpinned by a combination of favorable government initiatives, increasing internet and social media penetration, expanding network connectivity, and an evolving regulatory framework. Collectively, these factors continue to enhance India’s attractiveness as a strategic destination for both domestic and global data center investors.

The Indian government has also advanced multiple digital-first programs, including DigiLocker, broadband highway development, digital literacy initiatives, and AI-enabled platforms such as Arogya Setu. These efforts are contributing to the rapid expansion of digital service delivery and strengthening demand for scalable and resilient infrastructure.

Connectivity remains a key structural enabler for the market. As of October 2025, India hosted approximately 18 operational submarine cable systems, including 2Africa, AAE-1, BBG, EIG, SAFE, and Tata TGN networks. Furthermore, investments in additional submarine cable projects are underway, with several new systems expected to become operational between 2025 and 2027, improving international bandwidth capacity and network redundancy.

On the supply side, data center operators are increasingly developing large-scale campuses to meet rising requirements across hyperscale, colocation, and enterprise segments. Leading players such as AdaniConneX, NTT DATA, CapitaLand, Colt Data Centre Services, Yotta Infrastructure, ST Telemedia Global Data Centres, CtrlS Datacenters, and Nxtra by Airtel are building facilities with planned capacities exceeding 100 MW. This trend highlights the growing role of large-format colocation deployments in India’s evolving market landscape.

In May 2025, RackBank announced the commencement of construction for the first phase of its Nava Raipur data center campus. The initial phase is expected to deliver around 80 MW of power capacity, with the campus projected to scale up to approximately 160 MW in total and incorporate significant GPU-driven computing infrastructure once fully operational.

LATEST DEVELOPMENTS SHAPING MARKET MOMENTUM (2026 ONWARDS)

The India data center market continues to gain strong momentum with emerging AI-ready infrastructure projects and supportive national policy measures. Recently, a major MoU was signed to develop a 100 MW AI-ready data center in Bharat Future City, Telangana, backed by an investment of ₹5,000 Cr (~USD 552 million) and renewable energy integration. This project reflects India’s growing focus on high-performance computing capacity, sustainable operations, and the expansion of data center growth hubs beyond traditional markets such as Mumbai and Chennai.

In addition, the Union Budget 2026 has delivered a strong policy signal to position India as a global digital infrastructure hub. Key measures include a long-term tax holiday until 2047 for foreign cloud companies operating global services through India-based data centers, along with a 15% safe harbour margin for related entities. These incentives are expected to enhance tax certainty, attract hyperscale investment, and accelerate the buildout of AI-ready capacity, power infrastructure, and advanced cooling ecosystems across the country.

Together, these developments highlight how India is rapidly evolving into a high-growth destination for global data center investments, particularly in AI- and cloud-centric facilities.

Image: Recent Developments/Investments in India Data Center Market

INDIA DATA CENTER MARKET - KEY HIGHLIGHTS

1. Mumbai, Navi Mumbai, Hyderabad, Chennai, Pune, are the preferred locations in India, with major investments from colocation service providers such as ST Telemedia Global Data Centres, NTT DATA, CtrlS, Equinix, Sify Technologies, Nxtra by Airtel, among others.
2. Data center operators in India are showing interest in adopting renewable and they signed a renewable energy PPA for their data center facility. For instance, in November 2025, CtrlS Datacenters announced that it had signed an MoU with NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, to develop a renewable energy project with a capacity of around 2GW.
3. In India, the demand for data centers is steadily increasing. This growth is likely to raise the demand for both power and water, the two major components of data center operations. We believe that in the coming years, power challenges are likely to be reduced due to government initiatives and data center operators adopting renewable energy and in-house grid systems. However, we have noticed that there is likely to be one more challenge in the future, i.e, water challenges in the Indian data center market. Most of the data centers are expected to adopt a liquid cooling system, which uses less water than a traditional cooling system.
4. In August 2025, CtrlS Datacenters announced that it had launched its first phase of the Kolkata data center campus, which uses a liquid cooling system in its facility to manage its heat.

INDIA DATA CENTER MARKET VENDOR LANDSCAPE

The India data center market has the presence of several major data center operators, including AdaniConneX, Colt Data Centre Services, CtrlS, Equinix, Digital Connexion (BAM Digital Reality), NTT DATA, Nxtra by Airtel, ST Telemedia Global Data Centres (STT GDC), and others. Some data center operators have expanded their facilities across the country, with new developments expected to become operational during the forecast period.

The country has the presence of some of the major cloud operators, such as AWS, Google, IBM Cloud, Microsoft, Oracle, OVH, and Tencent Cloud, with dedicated cloud region(s). Their cloud regions are spread across various cities such as Chennai, Delhi NCR, Hyderabad, and Pune.

The India data center market has the presence of several major IT infrastructure vendors, including Arista Networks, Broadcom, Cisco Systems, Dell Technologies, IBM, Lenovo, NVIDIA, among others.

In India, some data center operators have adopted NVIDIA IT products to accelerate computing, networking, and software. For instance, Sify Technologies adopted NVIDIA DGX A100 systems, while RackBank deployed NVIDIA H100, A100, and GB200 GPUs for their data center.

The India data center market has the presence of several global and local data center construction contractors & sub-contractors, including AECOM, AIPL, DSCO Group, AHLUWALIA CONTRACTS (INDIA), KEC International KBE (Krishna Buildestates), Larsen & Toubro, Shubham EPC, Leighton Asia, Sterling and Wilson and others. For instance, in January 2025, Shubham EPC announced that it had started construction on two of its data centre projects, NMDC02 and NMDC03, for STT Global Data Centres in Navi Mumbai.

In India, data centers use both traditional cooling systems as well as liquid cooling systems. The liquid cooling has higher thermal transfer properties than the air-cooling system. It uses water or other fluids to cool high-density racks. For instance, Sify Technologies utilises liquid cooling in its data center facility at the Mumbai-Rabale campus, and it has also planned to implement a liquid cooling system in other facilities in India, which will support approximately 130 kW/rack. In addition, it has become the first data center in India to achieve NVIDIA DGX-Ready Data Centre certification for liquid cooling.

In November 2025, Johnson Controls announced the launch of the Silent-Aire Coolant Distribution platform, which is expected to provide scalable liquid-cooling capacities for data centres in India.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and the India colocation market revenue.
2. An assessment of the data center investment in India by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing India data center market landscape, an in-depth industry analysis, and insightful predictions about the India data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in India
6. Facilities Covered (Existing): 139
7. Facilities Identified (Upcoming): 99
8. Coverage: 25+ Locations
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in India
12. Colocation Market Revenue & Forecast (2022-2031)
13. Retail & Wholesale Colocation Revenue (2022-2031)
14. Retail & Wholesale Colocation Pricing
15. India data center landscape market investments are classified into IT, power, cooling, and general construction services, with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
18. A transparent research methodology and the analysis of the demand and supply aspects of the market.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the region (Area and Power Capacity)
2. Maharashtra
3. Uttar Pradesh
4. Tamil Nadu
5. Telangana
6. Other States
7. List of Upcoming Facilities in the region (Area and Power Capacity)
8. Maharashtra
9. Uttar Pradesh
10. Tamil Nadu
11. Telangana
12. Other States

REPORT COVERAGE:

This report analyses the India data center market share. It elaborately analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, cooling systems, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH
17. Chillers
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Building & Engineering Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV
31. Geography
32. Maharashtra
33. Uttar Pradesh
34. Tamil Nadu
35. Telangana
36. Other States

VENDOR LANDSCAPE

1. IT INFRASTRUCTURE PROVIDERS: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Lenovo, NEC, NetApp, NVIDIA, and Oracle.
2. DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS: AECOM, AIPL, AHLUWALIA CONTRACTS (INDIA), ARWADE INFRASTRUCTURE, DEC Infra, DSCO Group, Edifice Consultants, Emerge Engineering, KEC International, KBE (Krishna Buildestates), Larsen & Toubro, Leighton Asia, Listenlights, Nikom InfraSolutions, Prasa, Shubham EPC, Sterling and Wilson, Kent, Tata Projects, Techno Electric & Engineering, Turner & Townsend, and Vastunidhi Architects
3. SUPPORT INFRASTRUCTURE PROVIDERS: 3M, ABB, Alfa Laval, Bloom Energy, BlueBox by Swegon, Caterpillar, Climaveneta, Cummins, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Johnson Controls, Kirloskar Oil Engines (KOEL), Legrand, Panduit, Rehlko, Riello Elettronica, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, and Vertiv
4. DATA CENTER INVESTORS: AdaniConneX, Amazon Web Services, Bridge Data Centres, BSNL, Colt Data Centre Services, CtrlS Datacenters, Cyfuture, Digital Connexion, Equinix, ESDS Software Solution Limited, Google, Iron Mountain, Microsoft, NTT DATA, Nxtra by Airtel, Pi DATACENTERS, Princeton Digital Group, RackBank, Reliance Jio, Sify Technologies, ST Telemedia Global Data Centres, VueNow, and Yotta Infrastructure
5. NEW ENTRANTS: AirTrunk, CapitaLand, Digital Edge, Everstone Group, Lumina CloudInfra, Mapletree, NES DATA, and Techno Electric & Engineering Company (TEECL)