Data Centre Industry in India: Major Hubs and Future Prospects

India's data centre industry is rapidly growing, with major hubs emerging across the country. The country's data centre market is expected to reach $10 billion by 2025.

Bangalore is one of the key data centre hubs in India, with many major companies setting up their data centres there. The city's favourable climate and excellent infrastructure make it an ideal location for data centres.

Mumbai is another major data centre hub in India, with many companies setting up their operations there. The city's proximity to major financial centres and its excellent connectivity make it a popular choice for data centres.

Hyderabad is also emerging as a significant data centre hub in India, with many companies setting up their operations there. The city's favourable climate and excellent infrastructure make it an attractive location for data centres.

Additional reading: Data Hub vs Data Lake

India has several major hubs for the data centre industry, with Noida being the only data centre hub in North India. Noida has a significant data centre industry with a capacity of 72 MW and a total of 1.05 million sq ft with 11% market share.

For more insights, see: Colocation Centre

Google has acquired a 464,000 sq ft facility at Adani Centre in Noida in 2022. This acquisition is a testament to the growing demand for data centres in the region.

Kolkata is the only data centre hub in East India and the second biggest in the Indian subcontinent region. It has a total capacity of 67 MW and 1.2 million sq ft with a significant market share.

Noida (Delhi NCR) is a significant data centre industry hub in North India.

Noida has a capacity of 72 MW and a total of 1.05 million sq ft with 11% market share.

Google has acquired a 464,000 sq ft facility at Adani Centre in Noida in 2022.

The data centre industry in Noida is the only one in North India.

Noida is a prime location for data centre innovation due to its skilled workforce and manufacturing capabilities.

Chennai is a major hub for data centres, thanks to its high number of undersea cables, second only to Mumbai.

With a total capacity of 57 MW and a market share of 8%, Chennai is a significant player in the data centre market.

The city has a total floor area of 0.92 million sq ft, which is substantial.

Chennai is projected to overtake other markets and become the second-largest data centre hub by 2030.

Several major players, including Sify, Yotta, CtrlS, Princeton Digital, CapitaLand, STT, and NxtGen, have multiple campuses in the city, contributing to its local capacity.

Adani Enterprises has signed an MoU with the Tamil Nadu government to set up a data centre in Chennai, with an investment of Rs 2,500 crore.

Kolkata is the only data centre hub in the East India and second biggest in Indian subcontinent region with a total capacity of 67 MW and 1.2 million sq ft.

Major players in Kolkata's data centre scene include NTT, Sify, and STT, with STT operating a data centre of 34 MW.

Multiple data centre projects are under construction in Kolkata, with 195 acres of land earmarked for data centres as of 2021.

Reliance Jio has acquired a 40-acre plot for a data centre, while Adani Enterprise has taken a 51.8 acre plot to build a hyperscale data centre with ₹10,000 crore investment.

Bharti Airtel Nxtra Data is also building a hyper-scale data centre of 25 MW (150,000 sq ft) in Kolkata with an investment of ₹600 crore, which is under construction as of 2022.

The Hiranandani Group plans to set up six data centres at Hind Motor, Uttarpara, West Bengal, with a total capacity of 250 MW and an investment of ₹8,500 crore.

The India data centre industry is expected to reach a market size of $5 billion by the end of 2024, reflecting a compound annual growth rate (CAGR) of around 25% over the past few years.

Major global tech companies like Amazon Web Services, Microsoft, and Google are collectively investing over $2 billion in expanding their data centre footprints in India, contributing to the industry's rapid expansion.

The government's Digital India program and data localisation mandates are creating a conducive environment for investment, with data localisation policies alone projected to drive the construction of over 100 new data centres by 2025.

The total data consumption in India is expected to surpass 25 exabytes per month by 2025, driven by the proliferation of smartphones, e-commerce, and digital services.

By 2026, the market is projected to grow to $8 billion, with companies investing heavily in modernising existing facilities and constructing new ones to keep pace with technological advancements and growing demand.

Renewable energy sources are expected to power at least 50% of data centres by 2030, as the industry places a stronger emphasis on sustainability and minimises its environmental impact.

The India data center market is growing quickly, reaching USD 6.12 billion in 2023 and expected to grow at a compound annual growth rate (CAGR) of 12.22% to reach USD 10.89 billion by 2028.

Curious to learn more? Check out: Digital Unlocked

India is a rapidly growing economy with a strong focus on digital transformation. The government's Digital India initiative aims to create a 'digitally empowered society and knowledge economy' by digitizing public services and increasing technical infrastructure.

India has a skilled workforce with over five million people working in the IT and business process management industry, accounting for a 55% share of the global market for IT services. This adds immense value to the data center market in India.

The government has implemented policies such as classifying data centers as infrastructure assets, offering Goods and Services Tax refunds, stamp duty exemptions, and land cost subsidies to support the growth of data centers. These incentives make data center construction more appealing in India.

India's geographical location provides a strategic advantage in the global colocation market, serving as a gateway between East and West. This makes it an ideal location for businesses looking to establish a presence in the Asia-Pacific region.

Explore further: Why Are Data Centers Important

Navi Mumbai holds the largest data center market with 44% of the market share, boasting a total capacity of 289 MW. The city is home to major data center projects from companies like Equinix, Sify Technologies, and Yotta Data Services.

The Indian government is heavily investing in improving internet connectivity, with an additional $13 billion investment to expand the country's fiber-optic network. This will further enhance the digital infrastructure between key cities like Chennai, Delhi, Mumbai, and Hyderabad.

India's data center sector has experienced remarkable growth, with the colocation capacity surpassing 150 MW. This surge in colocation capacity underscores the escalating dependence on data centers among businesses across diverse sectors.

The India data center market is poised for significant growth, projected to reach USD 6.12 billion in 2023 and USD 10.89 billion by 2028, with a compound annual growth rate (CAGR) of 12.22%.

This growth is driven by the increasing need for data storage and processing capabilities, particularly in the digital landscape of India. The country's rapidly expanding digital landscape is making it necessary for businesses to have strong colocation service providers.

India's geographical location provides a strategic advantage in the global colocation market, serving as a gateway between East and West. This makes it an ideal location for businesses looking to establish a presence in the Asia-Pacific region.

The cost-effectiveness of India is another key driver of the colocation market, with India being cheaper than the US and Europe when it comes to colocation services. This affordability attracts both domestic and international organizations seeking economical yet reliable infrastructure solutions.

India's data center industry is expected to add more 681 MW capacity by the end of 2024, doubling the existing capacity to 1,318 MW with 7.8 million sq ft of real estate space.

The data centre industry in India is a rapidly growing market, with the colocation market experiencing significant growth in recent years. This growth is driven by the increasing demand for data storage and processing capabilities.

India's unique position in the global market makes it an essential location for organizations seeking reliable and cost-effective infrastructure. Colocation has emerged as a critical solution for these organizations.

The country's connectivity and network optimization capabilities are also a major draw for businesses. With a growing number of data centres popping up across the country, India is becoming a hub for data storage and processing.