India Data Center Market Set to Witness an Uptick: Projected to Grow at a CAGR of 17.2% by 2027

Published | 07 October 2021

India data center market is growing at a high CAGR because of the increasing adoption of cloud computing and growing government and private investment towards the construction of data centers.

A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the India data center market was worth USD 3.1 billion in the year 2020. According to the study, the market is estimated to grow at a CAGR of 17.2%, earning revenue of around USD 9.4 billion by the end of 2027. Indian data center market is growing at a high rate due to factors such as increasing volumes of data mainly driven by remote working and increasing demand for app-based services and OTT platforms such as Netflix, Amazon Prime, Zee5, etc. Additionally, the increasing number of small and medium-sized enterprises rapidly shifting towards cloud computing is also propelling the data center market in this region. Furthermore, large companies and other private entities are investing heavily in the construction of hyper-scale and colocation data centers, which is expected to drive the market in India during the forecast period. However, the high cost involved in constructing the data centers may act as a major restraining factor for this market.

Growing Number of Small and Medium-Sized Enterprises Is Expected to Boost the India Data Center Market

India is emerging as the leading country for startups and small and medium, offering them great opportunities. According to a report, it has been estimated that there are around 42.50 million registered and unregistered SMEs in India. This trend is the leading factor driving the growth of the India datacenter market. Moreover, data centers are becoming a basic requirement for companies as they shift to cloud computing, which is expected to become the major driver for market growth during the forecast period.


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Increasing Number of E-Commerce Platforms Driving the India Data Center Market

India offers lucrative growth opportunities for e-commerce platforms. Flipkart,, Myntra, Zomato, MakeMyTrip, and other online retail sites have a significant market presence. Therefore, the demand for data centers among these websites is increasing at a high rate. Data centers allow these online shopping portals to customize their services according to the local needs to target potential customers. Additionally, it allows them to offer real-time access to their websites, which helps them grow their businesses. All of these factors contribute to the growth of the Indian data centers market.

India Data Center Market - By End User

Based on end-users, the India data center market is segmented into BFSI, telecom and IT, media and entertainment, e-commerce, government, healthcare, and others. Among these sectors, the IT and telecom sector accounts for the largest market share. Data centers play a key role in continuously processing enormous data in real-time with very low latency. Therefore, the IT and telecom companies are investing significantly in expanding their IT infrastructure capabilities, which in turn drives the India data center market in the forecast period. Additionally, the BFSI also occupies a significant share of the market. India has emerged as the global leader in real-time payments, handling 41 million transactions per day. As a result, the demand for efficient data centers is increasing, propelling the market growth.

India Data Center Market - Regional Insights

Geographically, the India data center market is segmented into North India, South India, East India, and West India. Among these, the Western region is leading the market for data centers in India, with Mumbai taking the lead. However, the Northern region also accounts for a significant share in this market, with around 17 colocation data centers in Delhi. Furthermore, the number of data centers is also increasing at a high rate in this region, with a high concentration of startups, multinational corporations, financial institutions, and a large population of millionaires.

Impact of COVID-19 on India Data Center Market

India data center market was presented with enormous growth opportunities after the outbreak of the COVID-19 pandemic. As a result of the lockdown, data from internet connections and email tremendously soared significantly. The growth was largely due to remote working and online education. The result was the growth of cloud computing, resulting in the demand for more efficient data centers. Furthermore, increasing government and private investment towards establishing new data centers and upgrading the existing ones also favored the market. These are some of the reasons why the India data center market is prospering.

Competitive Landscape

The leading players in the India data center market are Nikom IT Infrastructure Private Limited, Delta Group, Trimax IT IT Infrastructure & Services Limited, Cisco India, Arshiya Limited, Huawei, Sify Technologies, Arista, Sterling & Wilson, Atos, and other prominent players.

The India data center market is still nascent and has a limited number of players. As a result, this market is favorable for new entrants and presents them with new growth opportunities. The companies significantly invest in the expansion of their data center facilities and increasing their capacities. Additionally, this market is also heavily influenced by competitive strategies such as launches, partnerships, mergers, acquisitions, and joint ventures.


Don’t miss the business opportunity of the India data center market. Consult our analysts to gain crucial insights and facilitate your business growth.


The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the India data center market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the India data center market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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