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Report Overview
The India data center market was valued to reach a market size of USD 4410.00 Million in 2024. The industry is expected to grow at a CAGR of 14.10% during the forecast period of 2025-2034. India data center market is driven by the expansion of the 5G technology, favourable governmental initiatives, and the growth in digital businesses and payments. These further aids to attain a valuation of USD 16492.82 Million by 2034.
2024
Base Year
2018-2024
Historical Year
2025-2034
Forecast Year
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The expansion in IT services increases the demand for data centers to control massive data traffic. In 2024, IT spending in India recorded a double-digit growth of 11.1%, totaling USD 138.6 billion up from USD 124.7 billion in 2023.
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The growing digitalisation of the economy, with businesses investing more in cloud storage and rising consumer demand for data, is driving the need for expanded data center power capacity. In 2027, India’s data center industry is projected to add 384.9 MW of data center capacity.
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Cities across India are experiencing significant data center growth. For instance, Hyderabad, with an existing IT capacity of 48.3MW, has 431MW in development, while Chennai, with 115.5MW of capacity, has an additional 271.5MW on the way. Between 2024 and 2030, over 2,000 MW of IT capacity is expected to come online across India’s major cities.
India Data Center Market Growth
Key industries such as manufacturing, retail, healthcare, and agriculture are incorporating the 5G technology to improve efficiency. By 2030, India's 5G market is expected to have 970 million subscribers. Furthermore, the growth in smart city projects aids 5G adoption. According to November 2024 data, India had issued a total of 8,066 smart city projects under the Smart Cities Mission (SCM). SCM was launched in June 2015 and is expected to extend till March 2025.
The growth in digital businesses and digital payment drives the demand for data centers to facilitate smooth customer transactions. In FY 2023-24, the total number of digital payment transactions volume increased to USD 2.27 billion (INR 18,737 crore), up from USD 0.30 billion (INR 2,071 crore) in FY 2017-18, constituting a growth rate of 44%. The introduction of UPI has further facilitated digital payment growth, aiding the demand for data centers. In 2024, the value of UPI-based payments reached over USD 2.4 trillion (INR 200 trillion).
The growth in the telecom industry supports the India data center market. Telecommunication data center automates traffic flow between services in a virtual network, optimising the use of network resources and improving application performance by selecting the optimal routing path.
In 2024, India was the world's second-largest telecommunications market, with a subscriber base of 1.20 billion.
India Data Center Market Report Snapshots
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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Key Questions Answered in the Report
In 2024, the market reached an approximate value of USD 4410.00 Million.
The India data center market is assessed to grow at a CAGR of 14.10% between 2025 and 2034.
The India data center market is estimated to witness healthy growth in the forecast period of 2025-2034 to reach a value of around USD 16492.82 Million by 2034.
The market is being aided by the increasing digital transformation, the introduction of various favourable government initiatives to boost investments in data centers, and the expansion of data center solutions.
The market growth can be attributed to the growing demand for high-speed data with low latency, the increasing adoption of data centers in the telecom industry, and the growing usage of data centers in the healthcare industry.
The major regions in the market in India include North India, South India, Central India, East India, and West India.
The various components of data center are services and solution.
The major IT infrastructures of data center in the market are network, server, and storage.
The significant electrical infrastructures in the market are UPS systems, generators, transfer switches and switchgears, and PDUs, among others.
The different mechanical infrastructures of data center are cooling systems and rack cabinets, among others.
The several general construction segments of data center are building development, installation and commissioning services, building design, physical security, and data center infrastructure management, among others.
The major industries of data center are banking, financial services, and insurance, healthcare, government and defence, manufacturing, IT and telecom, retail, and energy, among others.
The major players in the market are CTRLS Datacenters Ltd., Arshiya Limited., NTT Global Data Centers, Sify Technologies Limited., YottaData Services Private Limited, AdaniConnex Private Limited, Reliance Communications Ltd. (Reliance Datacenter), Pi DATACENTERS Pvt.Ltd., among others.
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