The India data centre market size was accounted for USD 5.87 billion in 2024 and is expected to be worth around USD 14.21 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.24% over the forecast period 2025 to 2034.
The india data centre market is growing very fast due to the vast demand for scalable and efficient data storage and processing solutions from IT, telecommunications, BFSI, healthcare, and e-commerce industries. The expansion of cloud computing, IoT, and big data analytics has further amplified the requirement for advanced data centre facilities. With an increasing focus on energy efficiency, green data centres, and high-speed connectivity, innovative technologies like AI-enabled cooling systems and modular data centres are gaining traction. Enhanced R&D investments and strategic partnerships continue to fuel advancements, ensuring that data centres meet the evolving needs of global industries.
The government’s push for data localization, the rise of e-commerce, and 5G deployment have fueled investments in new data centres. Major tech giants and real estate firms are investing in building hyperscale data centres to support the growing demand for data storage and processing. The introduction of artificial intelligence (AI), internet of things (IoT), and big data analytics is further driving expansion, with companies shifting towards sustainable and energy-efficient data centres. The availability of cheaper electricity, improved infrastructure, and favorable policies are positioning India as a leading data centre hub in the Asia-Pacific region.
What is a Data Centre?
A data centre is a facility that houses computer systems, networking equipment, and storage solutions to manage, process, and store large amounts of data. It is the backbone of modern digital infrastructure, enabling cloud computing, artificial intelligence, and big data analytics. Organizations, including businesses, government agencies, and IT firms, rely on data centres to ensure seamless online services, secure data storage, and efficient computing power. Data centres come in various types, such as enterprise data centres (used by individual businesses), colocation data centres (third-party managed facilities), and cloud data centres (operated by service providers like AWS, Microsoft Azure, and Google Cloud).
Key Insights Beneficial to the India Data Centre Market:
Report Scope
Area of Focus | Details |
Market Size in 2025 | USD 6.41 Billion |
Projected Market Size 2034 | USD 14.21 Billion |
Estimated CAGR 2025 to 2034 | 9.24% |
Key Segments | Type, Component, Tier Level, Data Center Size, Industry |
Key Companies | Adani Group, Arshiya Limited, CTRLS Datacenters Ltd., Equinix Inc, ESDS Software Solution Ltd., NetDataVault (NGBPS Limited), Nikom InfraSolutions Pvt. Ltd, Nippon Telegraph and Telephone Corporation, Nxtra Data Limited (Bharti Airtel Limited), Sify Technologies Limited, Sterling and Wilson Pvt. Ltd., Web Werks India Pvt. Ltd. |
Green Data Centers
IT Hubs of the World
Hybrid Cloud Development
High Electricity Rates
Poor Infrastructure
Lack of Trained Working Force
Regional Expansion
5G Infrastructure Support
Integration with Smart Cities
Barriers to Regulation
High Energy Consumption
Obsolescence through technology
The India data centre market is segmented into type, component, tier level, data center size, and industry. Based on type, the market is classified into enterprise data centers, colocation data centers, edge data centers, hyperscale data centers. Based on component, the market is classified into hardware, software, and service. Based on tier level, the market is classified into tier 1 and tier 2, tier 3, and tier 4. Based on data center size, the market is classified into small, medium, and large, Based on industry, the market is classified into BFSI, IT & telecom, healthcare, government, manufacturing, retail & e-commerce, and others (media & entertainment).
Enterprise Data Centers: Enterprise data centers are owned and operated by an organization to execute its internal IT infrastructure. They are usually private, with a specific design for business. Companies like Tata Consultancy Services (TCS) operate enterprise data centers in India, which can take care of the volumes of business-critical data in addition to enhancing security. Enterprises have excellent control over their data privacy and internal resources and can support industries demanding higher standards of compliance requirements.
Colocation Data Centers: Colocation data centers offer the room for companies to rent servers, storage, and network equipment. Such data centers enable a business to manage its IT infrastructure without the need to build their own facilities. Companies such as CtrlS Datacenters are in India providing colocation facility services: they afford power and cooling with reliable network connectivity. This service helps businesses save costs and become convenient in their operation through outsourcing data center needs while still having full control of their equipment.
Edge Data Centers: Edge data centers put processing power closer to where data is generated and consumed, which reduces latency. They are becoming very important in the world of IoT, autonomous vehicles, and real-time data analytics. In India, NexGen Data Centers is at the forefront in offering edge computing solutions to speed up the processing of data and reduce reliance on a centralized data center. These localized hubs promise rapid delivery of data to support high-bandwidth applications such as streaming and real-time analytics.
Hyperscale Data Centers: Hyperscale data centers are for providers of big-scale cloud services and giant technology giants since they are built for extremely large storage and processing capacities. In India, companies like Amazon Web Services (AWS) and Google Cloud are developing hyperscale data centers in response to the growing demand for cloud services. Varying in size, these centers boast tremendous computing power and scalable architecture, combined with strong security, to take care of massive data needs of enterprises, thereby allowing fast and reliable, cost-effective connectivity for global cloud service offerings.
Hardware: The components of a data center hardware include servers, storage systems, network switches, and physical infrastructure for the housing of cooling systems. Twomost major datacentre integrators at the Indian arch are HPE and Cisco Systems. The systems assure high availability and energy efficiency and scalability, all very critical for businesses involved in bulk data processing and storing, particularly when cloud and hybrid are used.
Software: Software in the data centers helps monitor and manage hardware, virtualized environments, and the databases stored. The key pillar delivers virtualization tools, operating systems, and cloud management platforms. VMware and Microsoft offer essential software solutions for Indian data centers to our businesses to better streamline data operations and enhance their flexibility. These will optimize performance and automate tasks such as load balancing, resource allocation, and data security.
Service: Services related to data centers include managed services, cloud hosting, network services, and consulting. STT GDC India provides such services, wherein it provides enterprises with scalable and reliable data center solutions. The demand for these services is growing as businesses increasingly rely on outsourcing their IT operations. These services help businesses improve operational efficiency, ensure business continuity and, more so, reduce capital expenditure from the knowledge base and investments of third-party providers.
The new entrants in the India data centre sector are employing technology to devise the most efficient and energy-efficient solutions, focusing on the integration of renewable energy sources, advanced cooling systems, and automation. These innovations are designed to optimize operational efficiency while reducing costs and environmental impact. Companies are also leveraging AI, machine learning, and edge computing to enhance the speed and reliability of data processing, enabling faster service delivery and greater scalability. This technological approach is reshaping the data centre landscape for the future.
Market Segmentation
By Type
By Component
By Tier Level
By Data Center Size
By Industry