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

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 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, 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 – $0.12 per kWh. The price was lower compared with other APAC countries such as Japan, China, Singapore, Thailand, Taiwan South Korea, among others.

INDIA DATA CENTERS - LATEST DEVELOPMENTS (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.

LIST OF FACILITIES IN INDIA

1. India’s Data Center Landscape at a Glance
2. 132 Existing Third-Party Data Center Facilities Covered
3. 81 Upcoming Facilities Identified
4. Coverage Across 25+ Key Locations
5. Existing vs. Upcoming Data Center Area
6. Existing vs. Upcoming IT Load Capacity
7. India’s Data Center Colocation Market
8. Colocation Market Revenue & Forecast (2022-2031)
9. Retail vs. Wholesale Colocation Revenue (2022-2031)
10. Retail vs. Wholesale Colocation Pricing
11. Key Insights into India’s Expanding Colocation Opportunity

KEY TAKEAWAYS

1. IT Infrastructure: The server infrastructure dominates the India data center market with the largest share 53% in 2025.
2. Electrical Infrastructure: In 2025, cooling systems dominated the India data center market with the largest share.
3. General Construction: The core & shell development segment contributes around 45% of the market share
4. Tier Standard: Tier III standard dominates the India data center market with the largest share.

RECENT DEVELOPMENTS & NEWS IN THE INDIA DATA CENTER MARKET

1. In May 2025, RackBank announced that it had started construction of the first phase of its Nava Raipur data center campus. The first phase is likely to offer a power capacity of around 80 MW, and the campus will provide around 160 MW of power capacity and is expected to be equipped with 100,000 GUPs once fully operational.
2. As of September 2025, around 81 data center projects are expected to be in the under-construction/planned/announced stage; these data centers, which are scheduled to be operational in the coming years, are likely to account for a total area of around 31.45 million sq ft.
3. In July 2025, Submer announced that it had signed an MoU with the government of Madhya Pradesh to construct liquid-cooled data centers with a total power capacity up to 1GW, located in Bhopal, Indore, Jabalpur, Gwalior, Ujjain, and Sagar.
4. As of early 2025, India has around 276 operational SEZs, some of which are the Madras Export Processing Zone, Noida, Vishakhapatnam, and GIFT City, among others.
5. In November 2025, TCS announced the launch of its new business entity, HyperVault AI Data Center Limited, which is likely to build a 1 GW AI data center in India within the next five to seven years with an investment of around $7 billion.
6. In November 2025, Techno Digital announced plans to invest around $1billion to expand its data center capacity. In addition, the company aims to increase its power capacity up to 250MW within the next five years.

INDIA DATA CENTER MARKET HIGHLIGHTS

1. 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.
2. 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.
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 DRIVERS

Increase in Submarine Cables Projects & Inland Connectivity

Submarine cables play an important role in the global internet, carrying over 90% of international data traffic as they enable communication across continents. Data centers located near submarine cable landing stations benefit from improved connectivity and internet speed, thereby making them an attractive way for businesses to rely on internet 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.

India has several internet exchange points, such as NIXI, DE-CIX Mumbai, Extreme IX, AMS-IX India, and others. All these connect with locations in Noida, Mumbai, Chennai, Kolkata, Hyderabad, Ahmedabad, Guwahati, and Delhi.

Increase in Demand for Cloud Services

Cloud adoption in India is rapidly evolving, driven by the tech-savvy shift in the population and the growing demand for digital services. The rise in social media usage has further increased the need for data centers, leading to a boom in the market for cloud-based offerings from technology companies.

The revenue generated from the public cloud market in India is projected to reach over $15 billion by 2025. The CAGR for the forecast period 2025-2030 is expected to be around 28%, with the Software as a Service (SaaS) segment dominating the market.

In October 2025, Microsoft announced that it has plans to launch new cloud regions in Asian countries, including India & Taiwan in 2026. The new cloud region in India will be in Hyderabad.

INDIA DATA CENTER MARKET TRENDS

Adoption of Digitalization and AI

The demand for AI and digitalization in India is increasing, driven by technological advances, changing consumer preferences, and the need for businesses to enhance efficiency.

India launched its National Strategy for AI in 2018 through NITI Aayog, which outlines the adoption of AI in healthcare, agriculture, education, climate change mitigation, space exploration, human collaboration, and the implementation of AI across various sectors.

This data has raised the demand for various services across sectors, be it e-commerce orders by customers, banking services, or data storage, creating a huge impact on BFSI, e-commerce, healthcare, media, and government sectors to adopt AI due to rapid digitalization adoption in their day-to-day processes.

Adoption of Sustainable Practices in Indian Data Centers

The Indian government announced that it aims to achieve the Net Zero emissions target by 2070.

In September 2025, the Minister of State for Power and New & Renewable Energy inaugurated the first Data Centre Summit on Carbon-Free Energy in New Delhi.

In September 2025, Princeton Digital Group (PDG) announced that it had signed a partnership deal with Flexidao and Tata Power Renewable Energy Limited (TPREL) to launch the first hourly carbon-free energy (CFE) matching program in India at its 150 MW MU1 data center campus in Mumbai.

DATA CENTER MARKET RESTRAINTS IN INDIA

Environmental Concerns, Site Selection Criteria and Power Availability

Data centers face a lot of challenges, which include fire, temperature, extreme weather conditions, and other natural disasters. As and when there is any natural calamity occurring, data centers, submarine cables, and cable landing stations are expected to face turbulence.

There are several factors to be considered for an ideal data center location. The factors might include land cost, environmental and natural disaster-prone areas, power availability, government incentives, and many others.

India is prone to disasters such as earthquakes, floods, tsunamis, droughts, cyclones, landslides, and others.

The environmental issues that the country faces include high energy and water consumption to power its data center servers and cooling systems, and no energy consumption reports are maintained by the facilities.

Supply Chain Concerns

Supply chain concerns include increasing global complexity in operations. Some of them include delays in the delivery of equipment or providing infrastructure, which impacts the data center construction timelines.

This shortage increases the CAPEX cost of the data facilities for obtaining such equipment and infrastructure.

The growth in data center construction has also increased the demand for data center infrastructure. Several new operators have entered the market, which has increased demand for infrastructure.

India depends on imported IT infrastructure components due to its limited manufacturing capacity. If there is any disruption in such components with a delay in delivery, this also might delay various projects and increase costs.

Sometimes, power access is critical for data centers. In case there is a delay in procuring solar panels or batteries, it disrupts the sustainability parameters and projects.

INDIA DATA CENTER MARKET SEGMENTATION INSIGHTS

INSIGHT BY IT INFRASTRUCTURE

The server infrastructure dominates the India data center market with the largest share 53% in 2025. The adoption of advanced technologies such as cloud, IoT, big data, and AI by enterprises will lead to high adoption of HPC infrastructure during the forecast period. ODM servers are likely to witness higher growth as hyperscale data center operators invest in application-specific data centers.

In September 2024, Lenovo started manufacturing AI servers at its Puducherry facility, operational since 2005. The initiative is strengthening India’s IT infrastructure by expanding local production of AI and GPU servers, supporting the growing demand for high-performance computing, and enabling enterprises and data centers to deploy advanced computing infrastructure.

INSIGHT BY ELECTRICAL INFRASTRUCTURE

In 2025, the generators accounted for the largest market share of the India data center market. Generators are essential when power outages are frequent and in areas that are susceptible to natural disasters. Generators in data centers are mostly procured to supply power backup in MWs and are designed with N+1 or N+N redundancy for Tier II and Tier III data centers. Generators for Tier IV facilities are designed with 2N+1 redundancy.

Most data center facilities in India continue to adopt different generators of N+1 redundancy with fuel backup of over 24 hours. However, operators are looking for sustainable biofuels to power their backup generators.

INSIGHT BY MECHANICAL INFRASTRUCTURE

In 2025, cooling systems dominated the India data center market with the largest share. Data center operators continue to attempt free cooling solutions to reduce the PUE of their data centers. Cooling systems are used in data centers to reduce the heat generated by IT infrastructure. Data centers usually adopt air and water-based cooling systems in the facility. CRAC, CRAH, chillers, cooling towers, dry coolers, economizers, and evaporative coolers are commonly adopted cooling infrastructures.

INSIGHT BY GENERAL CONSTRUCTION

In terms of general construction, the core & shell development segment contributes around 45% of the market share, followed by installation, design & engineering, project management, and commissioning. India has ample land available for data center development, due to which the market is witnessing larger greenfield construction. There is strong potential for modular/prefabricated data centers in the enterprise on-premises environment and edge data center facilities.

Some prime construction contractors in the country are AECOM, DSCO Group, Larsen & Toubro (L&T), Prasa, Sterling and Wilson, Turner & Townsend, Tata Projects, and Vastunidhi.

INSIGHT BY TIER STANDARD

Tier III standard dominates the India data center market with the largest share. As of October 2025, according to the Uptime Institute, India has more than 45 facilities that have received Uptime Institute’s Tier III certification, either in the design phase or for construction. These include data centers such as BRPL NHP Data Center, Infibeam GIFT Data Center, Sankhya Data Centre, PDG MU1 DC1-1F, Floor 1F, among others.

Most of the data centers are designed to be at least Tier III standards with a minimum of N+1 redundancy and 99.98% uptime.

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 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.

LIST OF DATA CENTERS IN INDIA

1. Snapshot of existing and upcoming third-party data center facilities in India
2. Facilities Covered (Existing): 132
3. Facilities Identified (Upcoming): 81
4. Coverage: 25+ Locations
5. Existing vs. Upcoming (Data Center Area)
6. Existing vs. Upcoming (IT Load Capacity)
7. Data center colocation market in India
8. Colocation Market Revenue & Forecast (2022-2031)
9. Retail & Wholesale Colocation Revenue (2022-2031)
10. Retail & Wholesale Colocation Pricing

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

DATA CENTER PROVIDERS/INVESTORS IN INDIA

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)

MARKET DEFINITIONS

1. Investment — total capital deployed across IT, electrical, mechanical, and general construction infrastructure for a data center facility, measured in USD.
2. Area (White Floor Space) — the usable raised-floor area allocated to IT equipment within a facility, measured in square feet.
3. Power Capacity — the total IT load a facility is designed to support, measured in megawatts (MW).
4. Tier Standard — the Uptime Institute classification (Tier I–IV) describing a facility's redundancy and fault tolerance.
5. Colocation Type — retail colocation serves tenants requiring smaller rack or cage footprints; wholesale colocation serves tenants leasing dedicated suites or halls.

RESEARCH METHODOLOGY

1. Primary Research: Interviews/interactions with data center developers, colocation providers, contractors, system integrators, and infrastructure providers.
2. Secondary Research: Analysis of annual reports, financial filings, press releases, data sheets, white papers, industry blogs, and tender documents.
3. Historical Period: 2022–2024
4. Base Year: 2025
5. Forecast Period: 2026–2031
6. Approach: Market data is validated using primary industry inputs and secondary sources, with 2025 representing actual values and 2026–2031 representing forecast estimates.