Report Overview

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.

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

By IT Infrastructure

• 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

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Increasing Volume of Data and Shift Towards Cloud Computing
         2. Increasing Construction of Data Centers In India
      2. Market Restraints
         1. High Initial Investment and Management Cost
      3. Market Challenges
         1. High Power Consumption and Carbon Emission
      4. Market Opportunity
         1. Flourishing E-Commerce Sector
         2. Growing Number of Small and Medium Sized Enterprises
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. India Data Center Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By IT Infrastructure
         1. Servers
         2. Storage
         3. Enterprise Networking
         4. Others
      2. By Type
         1. Enterprise Data Center
         2. Colocation Data Centers
      3. By End User
         1. BFSI
         2. Telecom and IT
         3. Media and Entertainment
         4. E-Commerce
         5. Government
         6. Healthcare
         7. Others
      4. By Region
         1. North
         2. South
         3. East
         4. West
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on India Data Center Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Nikom IT Infrastructure Private Limited
   2. Delta Group
   3. Trimax IT IT Infrastructure & Services Limited
   4. Cisco India
   5. Arshiya Limited
   6. Huawei
   7. Sify Technologies
   8. Arista
   9. Sterling & Wilson
   10. Atos
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: India Data Center Market Segmentation

Figure 2: India Data Center Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: India Data Center Market Size, By Value (USD Million), 2017-2027

Figure 5: India Data Center Market Share (%), By IT Infrastructure, By Value, 2017-2027

Figure 6: India Data Center Market Share (%), By Type, By Value, 2017-2027

Figure 7: India Data Center Market Share (%), By End User, By Value, 2017-2027

Figure 8: India Data Center Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: India Data Center Market Size, By IT Infrastructure, By Value, 2017-2027

Table 2: India Data Center Market Size, By Type, By Value (USD Million), 2017-2027

Table 3: India Data Center Market Size, By End User, By Value (USD Million), 2017-2027

Table 4: India Data Center Market Size, By Region, By Value (USD Million), 2017-2027

Table 5: Nikom Infrastructure Private Limited Financial Analysis

Table 6: Nikom Infrastructure Private Limited Business Overview

Table 7: Delta Group Financial Analysis

Table 8: Delta Group Business Overview

Table 9: Trimax IT Infrastructure & Services Limited Corporation Financial Analysis

Table 10: Trimax IT Infrastructure & Services Limited Corporation Business Overview

Table 11: Cisco India Financial Analysis

Table 12: Cisco India Business Overview

Table 13: Arshiya Limited Financial Analysis

Table 14: Arshiya Limited Business Overview

Table 15: Huawei Financial Analysis

Table 16: Huawei Business Overview

Table 17: Sify Technologies Financial Analysis

Table 18: Sify Technologies Business Overview

Table 19: Arista Financial Analysis

Table 20: Arista Business Overview

Table 21: Sterling & Wilson Financial Analysis

Table 22: Sterling & Wilson Business Overview

Table 23: Atos Financial Analysis

Table 24: Atos Business Overview