India Data Center Industry Expands Rapidly with Growing Cloud and Hyperscale Demand

 

Market Overview

The India data center market is undergoing significant transformation, driven by digitalization, growing internet penetration, and government initiatives supporting data localization. As more enterprises shift workloads to cloud platforms and demand for low-latency digital infrastructure increases, the sector continues to attract large-scale investments from global and domestic players.

According to the India data center market report by Mordor Intelligence, the market size is projected to reach 3.31 thousand MW in 2025 and expand to 6.69 thousand MW by 2030. Additionally, the colocation segment is expected to generate USD 2,337.9 million in revenue in 2025 and grow to USD 4,931.8 million by 2030, reflecting robust CAGR trends across both power capacity and service revenues.

Key Trends Driving Growth

  1. Cloud and AI Adoption Fueling Capacity Needs
     The adoption of cloud computing, artificial intelligence, and big data analytics across sectors like BFSI, e-commerce, and healthcare is significantly increasing the demand for scalable data center infrastructure. This trend is reshaping the India data center industry as businesses prioritize digital-first operations.
  2. Edge Data Centers Gaining Momentum
     As 5G rollout accelerates and real-time applications proliferate, edge data centers are becoming essential to support low-latency requirements. This shift is contributing to regional expansion beyond top-tier cities, adding depth to the India data center market share.
  3. Policy Support for Localization and Infrastructure
     The Indian government’s push for data localization and incentives for infrastructure development is attracting foreign direct investment and accelerating hyperscale projects. These policy moves are a cornerstone in shaping India data center industry growth.
  4. Colocation Demand from Enterprises and Startups
     The shift to hybrid IT environments is boosting the need for colocation services. Small and mid-sized enterprises increasingly prefer renting over building, spurring strong growth in the India data center market’s colocation segment.
  5. Green Data Centers and Sustainability Goals
     There is a rising focus on energy-efficient and renewable-powered data centers. With hyperscalers committing to net-zero targets, green innovations are becoming a defining trend in the India data center industry report.

Challenges

Despite rapid growth, the India data center industry faces challenges such as:

  • Power and Land Availability: Access to reliable, cost-effective power and suitable land parcels in key urban regions remains a constraint.
  • Regulatory and Compliance Barriers: While localization policies are favorable, navigating multi-tiered approvals and state-level regulations can delay projects.
  • Skilled Workforce Shortage: The demand for data center engineers, cybersecurity specialists, and infrastructure managers is outpacing the supply.

Conclusion

The India data center market is on a fast-paced growth trajectory, supported by technological advancement, investment influx, and favorable policies. With its size projected to double by 2030, the sector presents immense opportunities for hyperscalers, colocation providers, and infrastructure developers. Strategic investments in tier-2 cities, green energy, and edge facilities will be crucial to sustaining the momentum highlighted in the India data center market report. As the digital backbone of India economy, the industry’s evolution will continue to influence data-driven innovation across sectors.

Other Related Reports:
3d Printing
Switchgear Market
esports Industry
Power Electronics Market

Location: United States

Comments

Post a Comment

Popular Posts

Aviation Industry Set to Soar: Market to Hit USD 395.76 Billion by 2030 Amid Stable Growth

The aviation industry is projected to grow from USD 343.54 billion in 2025 to USD 395.76 billion by 2030, registering a compound annual growth rate (CAGR) of 2.87% during the forecast period of 2025 to 2030. Market Overview The global aviation industry is a vital part of the transportation sector, playing a critical role in global trade, tourism, and connectivity. As consumer demand for air travel rebounds post-pandemic and commercial fleets undergo modernization, the aviation market is undergoing transformative shifts. Emerging markets, technological innovation, and sustainability efforts are reshaping the aviation industry outlook, contributing to measurable aviation industry growth worldwide. Key Trends in the Aviation Industry Rise of Sustainable Aviation Fuel (SAF) One of the leading aviation industry trends is the growing emphasis on sustainability. Major aviation industry companies are investing in SAF to reduce carbon emissions, in line with international environmental goals. D...
Read more

Recreational Boating Market Set to Reach USD 36.82 Billion by 2030: Key Growth Drivers and Trends

  Market Overview The global recreational boating market is projected to expand from USD 28.71 billion in 2025 to USD 36.82 billion by 2030, reflecting a compound annual growth rate (CAGR) of 5.1% during the forecast period. This growth is primarily driven by increasing participation in water-based leisure activities, technological advancements in boat manufacturing, and a rising preference for sustainable boating options. Key Trends Technological Advancements in Boat Design and Functionality Innovations such as smart navigation systems, integrated IoT devices, and electric propulsion are enhancing the boating experience, making it more convenient and eco-friendly. Surge in Watersports and Fishing Activities An increasing number of individuals are engaging in watersports and fishing, driving demand for specialized recreational boats tailored to these activities. Shift Towards Sustainable Boating Solutions The adoption of electric and hybrid-powered boats is on the rise, aligning wi...
Read more

Kuwait Dairy Products Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Kuwait Dairy Products Market Analysis: The Kuwait Dairy Products Market is projected to experience significant growth in the coming years. According to estimates, the market size is expected to increase from USD 1.06 billion in 2024 to USD 1.42 billion by 2029, with a compound annual growth rate (CAGR) of 5.91% during the forecast period of 2024–2029. During the initial phase of business and community shutdowns, there was a surge in demand for dairy products in Kuwait. However, the disrupted supply chains, including dairy snacks, posed a major challenge. As a result of the lockdown, Kuwait and other Middle Eastern countries closed their borders or implemented trade barriers, affecting the availability of dairy products. The Kuwaiti dairy industry is closely regulated by the government, which ensures compliance with health and hygiene regulations that align with both GCC and international standards. Additionally, the industry is characterized by active foreign trade, involving both expo...
Read more

Coffee Machine Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Coffee Machine Market Analysis: 1. In 2020, the coffee machine market was valued at approximately USD 5.11 billion, and experts predict that it will experience a compound annual growth rate (CAGR) of over 4.5% from 2022 to 2027. However, the market faced challenges due to the COVID-19 pandemic, which led to restrictions on manufacturing activities and disrupted supply chains. As a result, coffee machine manufacturers in the United States and Europe had to temporarily halt production due to the lockdown in China, where they sourced various input supplies. Despite this setback, the market’s growth was sustained by the expansion of commercial infrastructure and the increasing number of offices. 2. The coffee industry has been undergoing significant transformations, driven by innovations, new product launches, and the surging demand from consumers. The rising popularity of instant non-alcoholic beverages, particularly coffee, in restaurants and office cafeterias has been a key factor drivi...
Read more