India Data Center Market Size & Share Analysis - Growth & Trends Forecast Report 2031

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 one of the trending data center markets and hotspots for data center development in APAC. Several factors, including increasing digitalization, government initiatives, high internet and social media penetration, strong inland and submarine cable connectivity, and a regulatory framework, drive this growth. These elements make the country an attractive destination for investors.

The Indian government has taken various initiatives, such as Digital Literacy, Digi Locker, Broadband highways, Arogya Setu, and many more, incorporating AI and advanced technology to reach customers and offer digital ways for accessing services.

As of October 2025, India has hosted around 18 operational submarine cables, such as 2Africa, Asia Africa Europe-1 (AAE-1), Bay of Bengal Gateway (BBG), Europe India Gateway (EIG), SAFE, Tata TGN-Tata Indicom, and others. The country continues to witness investment in five more submarine cables, which are expected to become operational by 2025-2027. The expansion of submarine cable infrastructure is also supporting the growth of the India data center construction market by improving international connectivity, increasing data transmission capacity, and encouraging hyperscalers, cloud service providers, and colocation operators to develop new data center facilities near major cable landing stations.

Data center organizations in India are building high-capacity campuses to continuously increase the supply to meet the demand for digitalization across all sectors in India. AdaniConneX, NTT DATA, CapitaLand, Colt Data Centre Services, Yotta Infrastructure (Hiranandani Group), ST Telemedia Global Data Centres, CtrlS Datacenters, and Nxtra by Airtel are building data center campuses with capacities of more than 100 MW. These development initiatives clearly indicate that the market share of large colocation facilities is expected to grow significantly during the forecast period.

INDIA DATA CENTER MARKET INSIGHTS BY AREA

The India data center market by area is expected to reach 2.27 million sq ft by 2031. India is one of the major data center market players in APAC, offering plenty of space for data center growth. The Indian government takes the initiative to attract foreign investment, such as establishing Free Trade Zones (FTZs), 20 20-year tax rebate for both local and global data center developers, improved logistics, better infrastructure connectivity, and government support.

In India, some states, including Karnataka, Maharashtra, Tamil Nadu, Uttar Pradesh, and others, have their own data center policies that provide special incentives to data center developers, such as land subsidies, Capital subsidies, and power subsidies, among others.

Mumbai, Navi Mumbai, Hyderabad, Chennai, and 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.

INDIA DATA CENTER MARKET INSIGHTS BY POWER CAPACITY

The India data center market by power capacity is expected to reach 597 MW by 2031. India is working toward a more sustainable and carbon-free country. The government of India has pledged that the country is likely to achieve the target of net-zero carbon emissions by 2070. By 2030, the government has set a target of 500 GW of installed renewable energy, which includes 140 GW of wind power and 280 GW of solar power.

Data center operators in India are showing interest in adopting renewable and they have 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.

As of September 2025, the industrial electricity power prices in India ranged between $0.07 and $0.12 per kWh. The price was lower compared with other APAC countries such as Japan, China, Singapore, Thailand, Taiwan, and South Korea, among others.

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 and liquid cooling systems. 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.