India Data Center Market - Investment Analysis & Growth Opportunities 2023–2028

INDUSTRY OVERVIEW

The India data center market size will witness investments of USD 9.96 billion by 2028, growing at a CAGR of 10.69% during the forecast period. India is among the most developing data center markets in the APAC region that comes in the third position after China and Australia in terms of data center investment in the APAC region in 2022. The India data center market has the presence of local and global data center operators such as Equinix, NTT Global Data Centers, Nxtra by Airtel, Sify Technologies, ST Telemedia Global Data Centers, Yotta Infrastructure, CtrlS, and others. 

India is among the cheapest countries to build a facility in the APAC region. As per Turner & Townsend, the construction costs in Mumbai in 2022 were around USD 6.0 per watt. Also, India's land and power costs are cheaper than other APAC countries such as Japan, Australia, Hong Kong, Singapore, and others. Further, several states in India have launched their own data center policies to attract investment in the respective states. Telangana, Karnataka, Uttar Pradesh, Tamil Nadu, Odisha, and Haryana have introduced their respective state data center policies. 

The high internet and social media penetration across the country, driven by the deployment of 5G services, better and improved inland connectivity, availability of renewable energy, and government support, makes the India data center market attractive to investors. Moreover, according to the Reserve Bank of India’s (RBI) Data Localization Policy, all the payment firms in India are directed to keep a record of all transactions related to insurance data and others within Indian servers.

KEY HIGHLIGHTS

• The India data center market is one of the most dynamic markets in the world and is among the developing data center market in the APAC region. The market is in the top hot form, witnessing several new data center investments from local and global operators.
• Apart from the colocation operators, the country is also witnessing new investments from hyperscalers like Microsoft and Amazon Web Services. The companies are developing their self-built facilities across the country.
• Due to the growth in demand, India will be the most preferred market for data center providers. Implementing data localization laws will be a strong catalyst for growth in the coming years. The rise in the demand for entertainment, mobile gaming, and online content will be a strong force for data center development in the country.
• Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, and other States witness growth in AI, IoT, virtual reality, online payment systems, and smart solutions, which will attract investments in the country.
• Regarding sustainable data center growth in the country, several states invest in renewable projects, such as Tamil Nadu, Madhya Pradesh, Rajasthan, Karnataka, and others. Such projects are expected to grow further in the coming years. These developments will attract investors to the India data center market.
• The country is also witnessing improvement in submarine and inland connectivity. For instance, seven upcoming submarine cables will connect India with Singapore, Thailand, Greece, France, Saudi Arabia, the UAE, Italy, the UK, and other countries.
• Significant deployment and adoption of 5G services in India will fuel data traffic and further grow the demand for more facilities. For instance, VueNow Infotech has planned to launch several edge facilities across Bihar and Uttar Pradesh.
• Data center service providers are continuously involved in adopting renewable energy and aim to reduce their carbon footprints, which will aid sustainable facilities developments. For instance, in October 2022, PhonePe announced the launch of a green data center in collaboration with NTT and Dell Technologies in India.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and India colocation market revenue.
• An assessment of the data center investment in India by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across states in the country.
• A detailed study of the existing India data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in India
  • Facilities Covered (Existing): 100+
  • Facilities Identified (Upcoming): 90+
  • Coverage: 20+ Locations
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in India
  • Colocation Market Revenue & Forecast (2022-2028)
  • Wholesale vs Retail Colocation Revenue (2022-2028)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The India market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• Some key colocation investors in the India data center market include Equinix, NTT Global Data Centers, Sify Technologies, Nxtra by Airtel, ST Telemedia Global Data Centres, Yotta Infrastructure, CtrlS, and others.
• Microsoft and AWS are involved in self-built data centers in India, which might impact colocation take-up over the long term. It is most likely that Microsoft and AWS would require hundreds of megawatts of capacity to cope with the digitalization growth in the Indian market.
• The cloud operator, Amazon Web Services, opened its new cloud region in Hyderabad, Telangana, with three availability zones. Microsoft has also planned to open its new cloud region in Hyderabad.
• The India data center market also witnessed several new entrants expanding their regional presence. Some include AdaniConneX, BAM Digital Realty, CapitaLand, Princeton Digital Group, EverYondr, Colt Data Centre Services, Chindata Group, and Digital Edge.
• The country is also witnessing an increase in the adoption of cloud services. Amazon Web Services, Microsoft, Google, Oracle, Alibaba Cloud, IBM Cloud, and Tencent Cloud have their dedicated cloud region across the country in several locations such as Mumbai, Chennai, Hyderabad, Delhi, and Pune.
• Telecom operators such as Bharti Airtel and Reliance Jio are the major telecom operators that have deployed 5G technology in some cities or are launching commercial 5G services nationwide. Vodafone Idea (Vi) is yet to launch its 5G services in India.
• The operators are increasing their India data center market share and presence nationwide by forming a joint venture with the operators or investing in the company. For instance, Yondr marked its presence in the Indian data center market by forming a joint venture with Everstone Group, wherein the joint venture will be called EverYondr.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Maharashtra
  • Tamil Nadu
  • Telangana
  • Uttar Pradesh
  • Other States
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

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

• Facility Type
  • Colocation Data Centers
  • Hyperscale Data Centers
  • Enterprise Data Centers
• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Building & Engineering Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Juniper Networks, Lenovo, NEC, NetApp, Oracle.
• Data Center Construction Contractors & Sub-Contractors: AECOM, AHLUWALIA CONTRACTS (INDIA), DEC Infra, DSCO Group, Emerge Engineering, Nikom InfraSolutions, Larsen & Toubro, Prasa, Listenlights, Sterling and Wilson (Shapoorji Pallonji Group), Turner & Townsend, Tata Projects, VASTUNIDHI.
• Support Infrastructure Providers:3M, ABB, Alfa Laval, Bloom Energy, Blue Box by Swegon, Caterpillar, Climaveneta (Mitsubishi Electric), Cummins, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Johnson Controls, Kirloskar Oil Engines (KOEL), Legrand, NetRack Enclosures, Panduit, Riello Elettronica, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, Vertiv.
• Data Center Investors: Amazon Web Services (AWS), CtrlS, Cyfuture, Equinix, Nxtra by Airtel, Microsoft, NTT Global Data Centers, Reliance Jio, ST Telemedia Global Data Centres, Sify Technologies, Web Werks, Yotta Infrastructure.
• New Entrants: AdaniConneX, BAM Digital Realty, CapitaLand, Chindata Group. Colt Data Centre Services, Digital Edge, EverYondr, Lumina CloudInfra, MetaEdge Platforms, OVHcloud, Princeton Digital Group, VueNow Infotech.