India Data Center Market, By IT Infrastructure (Servers, Storage, Enterprise Networking, Others), By Type (Enterprise Data Center, Colocation Data Centers), By End User (BFSI, Telecom and IT, Media and Entertainment, E-Commerce, Government, Healthcare Others), By Regions (North, South, East, West) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: October 2021
  • Report ID: BWC21124
  • Available Format: PDF
  • Page: 118

Report Overview

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.

India Data Center Market- Industry Trends & Forecast Report 2027

India data center market was worth USD 3.1 billion in 2020 and is further projected to reach USD 9.4 billion by 2027, growing at the CAGR of 17.2% in the forecast period. The market is flourishing at a high rate because of the country’s developing IT infrastructure, emerging small and medium-sized enterprises, and rapid shift towards cloud computing. Furthermore, government and private entities’ investment towards the construction of data centers is expected to drive the India data center market in the forecast period.

India Data Center Market

Source: BlueWeave Consulting

India Data Center Market- Overview

A data center is a facility or a building that stores components such as servers, storage systems, switches, routers, firewalls, etc. They are designed to handle data storage, processing, and distribution. Data centers are crucial for carrying out necessary functions such as sending emails online or working on the cloud.  A company's internal and external operations are highly dependent on its data centers. Hence, data centers are a top priority for an organization with regards to reliability and security.

India Data Center Market Forecast and Trends

Growth Drivers

Growing Volume of Data

Due to COVID-19 and the increased penetration of home entertainment options such as OTT platforms, India is experiencing increased internet traffic volumes fueled by remote working and online education. Furthermore, increasing penetration of smartphones and other data-generating devices such as wearables, medical equipment, and IoT devices are also generating a huge volume of data every day. Due to this, the market for data centers in India is growing as companies seek to store, process, and access such data efficiently and at scale.

Increasing Investment in Establishing Data Centers

Government and private entities are investing significantly in building new hyperscale and colocation data centers in India due to the increase in data volumes, which will drive the India data center market in the forecast period. In India, Techno Electric & Engineering Company, a major power infrastructure company, recently announced plans to invest USD 1 billion in the development of data centers. Similarly, cloud computing infrastructure firm Linode announced a tripling data center capacity in India. Such developments are expected to boost the market in the forecast period.

Restraints

High Initial Cost Involved in Data Center Construction and Management

The cost involved in the construction of data centers is one of the major restraining factors for the India data center market. According to estimates, constructing a data center in India costs almost USD 10 million to USD 25 million, which is deemed expensive for the price-sensitive Indian market. Data centers are prohibitively expensive for small and medium-sized businesses, and government investments only thwart market growth, especially for companies planning to expand their business and IT infrastructures.

Impact of COVID-19 on India Data Center Market

The India data center market flourished significantly after the outbreak of the COVID-19 pandemic. The country’s data center demand is witnessing growth due to the exponential growth of some verticals such as online entertainment streaming apps, cloud computing, and gaming. Furthermore, the rapid surge in the data for educational purposes also increased the need for cloud systems. The government and private sector are investing significantly in expanding the capability of hyper-scale and colocation data centers to take advantage of this opportunity.

India Data Center Market - By IT Infrastructure

Based on IT infrastructure, the India data center market is segmented into servers, storage, enterprise networking, and others. Among these, the servers segment holds the largest share in the India data center market. These components play the most crucial role in a data center as the servers provide processing, memory, local storage, and network that drive applications. Demand for hyper-scale data centers in the country is increasing mainly due to increased demand for mobile apps and OTT platforms.

India Data Center Market - By Type

Based on types, the India data center market is segmented into enterprise data centers and colocation data centers. The enterprise data center accounts for the largest market with the presence of major companies such as Reliance Industries, State Bank of India, etc., which requires hyperscale data centers to carry out their operations. However, the colocation data centers are expected to witness the biggest surge in the forecast period as the number of small and medium-sized companies is increasing at a high rate in India.

India Data Center Market - Regional Insights

Geographically, the India data center market is segmented into North, South, East, and West. The West region dominates the India data center market with Mumbai leading the market. There are currently 6 providers and 12 data centers in Mumbai that include 11 colocation facilities, 6 cloud notes, 4 internet exchanges, and 2 disaster recovery and business continuity. Furthermore, this region is also expected to flourish in the forecast period as Mumbai is expected to add 300 MW in the next two years.

Competitive Landscape

The leading players in India data center market are Nikom IT Infrastructure Private Limited, Delta Group, Trimax 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 flourishing and therefore has a limited number of market players. This makes this market favorable to the new entrants and offers them new growth opportunities. The companies significantly invest in the expansion of their data center facilities and increasing their capacities. Furthermore, the adoption of competitive strategies like launches, partnerships, mergers, acquisitions, joint ventures is also very prominent in this market.

Recent Development

  • In September 2021, Indian ISP Sify Technologies announced its plans to build 200MW data centers in India over the next four years. The internet company plans to more than double its data center footprint by establishing hyperscale and retail facilities in Mumbai, Delhi, and Bengaluru.
  • In September 2021, Trend Micro, a cloud security platform, launched its Cloud One regional data centers in India to help the Indian consumer base to adopt cloud security services.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia

Product Service/Segmentation

By IT Infrastructure, By Type, By End User, By Region

Key Players

Nikom IT Infrastructure Private Limited, Delta Group, Trimax IT Infrastructure & Services Limited, Cisco India, Arshiya Limited, Huawei, Sify Technologies, Arista, Sterling & Wilson, Atos, and other prominent players.

 

By IT Infrastructure

  • Servers
  • Storage
  • Enterprise Networking
  • Others

By Type

  • Enterprise Data Center
  • Colocation Data Centers

By End-User

  • BFSI
  • Telecom and IT
  • Media and Entertainment
  • E-Commerce
  • Government
  • Healthcare
  • Others

By Region

  • North
  • South
  • East
  • West

Frequently Asked Questions:

Ans: India data center market will reach USD 3.1 billion in 2020.
Ans: The major factors driving the growth of the India data center market are; growing volume of data and increasing investment in establishing data centers.
Ans: The key players in the India data center market are: Nikom IT Infrastructure Private Limited, Delta Group, Trimax IT Infrastructure & Services Limited, Cisco India, Arshiya Limited, Huawei, Sify Technologies, Arista, Sterling & Wilson, Atos, and other prominent players.
Ans: The IT and telecom segment accounted for the largest share in the India data center market.
Ans: West has the largest share in the India data center market.