Data Centre Market Size in India | Forecast & Growth Insights 2025

Q: What is the growth rate of India data centre market?

The growth rate of India data centre market is predicted to grow at a CAGR of 13.4% during 2025–2031.

Q: What is driving hyperscale investment in India?

Affordable land, abundant talent, and supportive regulations are attracting global cloud and tech firms to build hyperscale campuses in India.

Q: Are tier-2 cities emerging in the data centre space?

Yes, cities like Pune, Ahmedabad, and Jaipur are seeing increasing interest due to rising local data demand and connectivity improvements.

Q: How is sustainability shaping India’s data centres?

Providers are adopting solar and wind energy, advanced cooling systems, and PUE optimization to reduce environmental impact.

Q: What role do telecom and cloud firms play in growth?

Telcos and cloud hyperscale are leading demand with colocation partnerships, captive infrastructure, and edge deployments.

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Code: MTA4565

Publication Date: Jun 2025

What is the size of Data Centre Market in India?

According to 6Wresearch internal database and industry insights, the India data centre market is projected to grow at a CAGR of 13.5% during the forecast period 2025–2031.

India data centre market is experiencing revolutionary growth over the years, as the market is driven by the digital economy boom, growing internet usage, and rising demand for data localization. The major urban hubs in India like Mumbai, Hyderabad, Chennai, and Bengaluru are evolving into major data centre clusters due to reliable connectivity, power availability, and strategic geographic positioning. Due to support of government and the data centre policies, SEZ benefits, and infrastructure status recognition is further accelerating private and public sector investments.

Key Growth Factors of the India Data Centre Market

Rapid digitalization across BFSI, OTT, e-commerce, and government services
Growth of cloud services, 5G, and AI accelerating data infrastructure demand
Mandates around data sovereignty and storage of sensitive data within India
Favourable government policies and financial incentives for data centre parks
Surging domestic and foreign investment from hyperscale and REITs
Rising adoption of green and energy-efficient data centre designs

India Data Centre Market Trends

India data centre landscape is evolving with the emergence of edge data centres in tier-2 cities, that enables low-latency applications and regional content delivery. The facilities of hyperscale are increasingly integrating renewable energy sources to meet sustainability targets. Further, the Automation, AI-powered monitoring, and modular data centre deployment are creating efficient operations. The trend towards hybrid and multi-cloud strategies is also increasing demand for carrier-neutral colocation and interconnect services. Data localization, compliance, and disaster recovery capabilities will remain major drivers of infrastructure expansion.