Published : 19 Dec 2025
The India data center market is currently valued at USD 6.20 billion in 2025 and is projected to reach around USD 16.62 billion by 2035, indicating a robust CAGR of 10.5% during the forecast period from 2026 to 2035.
The growth of the India data center market is being fueled by the rapid expansion of the cloud computing industry, artificial intelligence, big data analytics, and digital platforms across different sectors. The increasing volume of data generated through the increasing Internet penetration, OTT streaming, online gaming, digital payments, and e-commerce will force the need for secure, scalable, and low-latency data center infrastructure in order to efficiently process the enormous volumes of data generated because of these trends. Concurrently, the increasing use of data localization and the increasing need for data security have created an opportunity for enterprise and global cloud providers to store and process their data in India, which has led to an increase in the development of colocation, hyperscale, and edge data center facilities in the major cities as well as in the emerging metropolitan states across India.
Nxtra Data, a subsidiary of Bharti Airtel, has recently announced expanding its hyperscale and colocation data centers throughout many countries in India. This expansion is anticipated to address the rising number of enterprises and cloud service providers looking to take advantage of digital technology and cloud-based businesses. The establishment of new data centers will provide additional capacity for future growth and will offer other advantages to new data centers that include increased capital investment in renewable energy, installation of energy-efficient cooling and heat management systems, and the installation of modular data center design to be more environmentally friendly and economically viable. Additionally, supportive policies and financial incentives from the government of India have fostered favorable conditions for the establishment and growth of the data center industry and the creation of an infrastructure status for data center facilities, as well as an extensive roll-out of 5G and edge computing on a national basis. As such, continued long-term growth is likely for the Indian data center industry.
Rapid Cloud, AI, and Digital Service Adoption Accelerating India Data Center Capacity Expansion
One of the key drivers of the India data center market is the rapid expansion of cloud computing and digital services in various sectors such as IT & telecommunications, banking, financial services and insurance (BFSI), retail and government is a major contributor to the growth of the market. The growing trend of using artificial intelligence (AI), big data analytics, software as a service (SaaS) platforms, digital payment options, over the top (OTT) streaming services, and e-commerce has created a large volume of data, requiring companies and hyperscalers to build and expand their collocation (Colo) and hyperscale data centers to meet the increased demand for secure, scalable, highly available infrastructure and to support the demands for low latency, regulatory compliance and reliable service delivery.
Edge Data Center Expansion in Tier-II and Tier-III Cities Unlocks Low-Latency Growth
A major opportunity in the India data center market lies in the expansion of developing edge data centers throughout tier 2 and tier 3 cities. The roll-out of 5G, Internet of Things (IoT), and the increased demand for real-time data processing require low-latency infrastructure to be near the end user. Edge facilities provide for faster content delivery, support for smart cities, and reduction of network congestion. Thus, edge facilities create new revenue streams for operators while expanding the digital infrastructure network beyond traditional metro centers.
High Capital Investment and Power Infrastructure Challenges Limit Data Center Scalability in India
One of the key restraints in the India data center market is the high capital expenditure & limitations on power infrastructure. Large capital are necessary for developing a data center, including land acquisition, infrastructure development, power distribution, cooling systems, and server or network connectivity. The continuing increase in electricity costs, combined with the lack of availability of electric power in certain geographical areas, creates an increased dependency on backup power systems and increased operating costs for the data centers. In addition, the increasing need for redundancy, uptime, and sustainability results in increased costs, which may hinder the ability to execute projects and limit scalability for smaller and newer market participants.
The market for India data center has been segmented into component, product, propulsion type, application, end-use, and region.
India Data Center companies profiled in the report include Sterling and Wilson Pvt. Ltd., Web Werks India Pvt. Ltd., CTRLS Datacenters Ltd., Equinix Inc., ESDS Software Solution Ltd., NetDataVault (NGBPS Limited), Nikom InfraSolutions Pvt. Ltd., Nippon Telegraph and Telephone Corporation, Nxtra Data Limited, Sify Technologies Limited, Adani Group, and Arshiya Limited
| Parameter | Details |
| Size in 2025 | USD 6.20 Billion |
| Forecast by 2035 | USD 16.62 Billion |
| CAGR During 2026 - 2035 | 10.5% |
| Largest Component Segment (% Share 2025) | Hardware– 55% |
| Key Players Covered | Sterling and Wilson Pvt. Ltd., Web Werks India Pvt. Ltd., CTRLS Datacenters Ltd., Equinix Inc., ESDS Software Solution Ltd., NetDataVault (NGBPS Limited), Nikom InfraSolutions Pvt. Ltd., Nippon Telegraph and Telephone Corporation, Nxtra Data Limited, Sify Technologies Limited, Adani Group, and Arshiya Limited. |
Contact:
Mr. Richard Johnson
Acumen Research and Consulting
India: +91 8983225533