India data center market is no longer just emerging, it has arrived. With 427 MW absorbed in 2025 alone and a pipeline exceeding 2 GW, the trajectory is undeniably vertical. For stakeholders, the message is clear: the convergence of AI, government support, and robust connectivity has created a perfect storm for growth, making India the most exciting digital real estate market globally.
New Delhi, Jan. 12, 2026 (GLOBE NEWSWIRE) — The India data center market was valued at US$ 8.94 billion in 2025 and is projected to hit the market valuation of US$ 31.36 billion by 2035 at a CAGR of 13.37% during the forecast period 2026–2035.
Driven by an unprecedented digital transformation, the India data center market is currently experiencing a historic expansion phase characterized by aggressive capacity scaling and massive capital inflows. In 2025 alone, the sector witnessed a remarkable supply addition of 387 MW, pushing the total operational stock to a robust 1,520 MW. This supply surge is seamlessly matched by insatiable demand, evidenced by a record absorption of 427 MW, primarily fueled by cloud hyperscalers and the rapid integration of Artificial Intelligence. Consequently, global investors are capitalizing on this high-growth momentum, with industry giants like the Adani Group committing USD 10 billion to fortify infrastructure development.
Request Sample Pages: https://www.astuteanalytica.com/request-sample/india-data-center-market
Furthermore, the convergence of high-density computing and renewable energy is redefining industry standards. With innovations such as liquid cooling and a massive USD 15 billion ecosystem investment by AdaniConneX and Google, the region is fast evolving into a sophisticated global connectivity hub. Looking ahead, the trajectory remains aggressively positive, with Nomura forecasts predicting capacity to skyrocket to 9.2 GW by 2030. Ultimately, these strong quantitative indicators confirm that the India data center market offers one of the most lucrative and scalable investment landscapes in the global digital economy.
Key Findings
- Based on hardware, servers accounted for more than 37.05% of the total revenue in the India market
- Based on end users, Banking Financial Services and Insurance (BFSI) sector is the biggest end users with over 32.80% market share.
- West India capture over 44% market share.
- India data center market is expected to grow at CAGR of 13.37%
Operational Capacity Soars With Record Infrastructure Additions in 2025
The India data center market witnessed unprecedented supply growth as developers aggressively accelerated construction timelines to meet digital infrastructure needs. Savills India reports that the sector added an impressive 387 MW of new IT capacity in 2025 alone. Such a figure represents a substantial leap compared to the 191 MW added throughout 2024. Consequently, the total operational data center stock across the nation climbed to a robust 1,520 MW by the end of 2025. Construction activity remains feverish, with 1.03 GW of colocation capacity currently classified as under construction for the 2024–2028 cycle. Furthermore, developers have an additional 1.29 GW in the planning stages to sustain this momentum.
Key players are swiftly expanding their footprints to secure dominance in the India data center market, fueling a transition from steady growth to hyperscale dominance. For instance, NTT Global Data Centers scaled its operations to over 265 MW across 18 facilities by early 2024, while STT GDC India solidified its leadership by managing more than 300 MW of critical IT load nationwide. These bold moves not only highlight aggressive capacity additions but also reflect stakeholders’ urgency to deploy infrastructure rapidly, positioning the sector to meet the surging demands of enterprise digitalization.
Absorption Rates and Future Demand Projections Reach New Heights
User demand in the India data center market has surged alongside supply, propelled by hyperscalers and widespread cloud adoption. This momentum drove absorption to 427 MW in 2025—eclipsing the 407 MW of 2024—with Cloud Service Providers (CSPs) fueling 54% of late-2024 demand. Regional hotspots underscore the intensity: Mumbai will need 4.41 million sq ft of space over the next three years, while Chennai requires 2.89 million sq ft to bolster its expanding digital ecosystem.
Looking ahead, long-term forecasts signal sustained exponential growth. JLL anticipates total capacity reaching 1.8 GW by 2027, while Nomura’s more ambitious projection sees it soaring to 9.2 GW by 2030. These trends confirm that today’s absorption is just the start of a decade-long boom, urging enterprises to gear up for a future of massive scale and relentless infrastructure needs.
Capital Inflows Highlight Massive Financial Confidence in Digital Infrastructure
Global and domestic investors are pouring billions into the India data center market, underscoring strong confidence in its long-term profitability. Leading the charge, the Adani Group committed a massive USD 10 billion for expansion, amplified by its AdaniConneX-Google joint venture’s USD 15 billion ecosystem investment. Similarly, STT GDC India announced USD 3.2 billion in capital, CtrlS Datacenters pledged USD 2 billion over three-to-four years, and NTT allocated USD 1.5 billion to double its capacity.
These broad infusions extend to targeted tech plays, further elevating market value. Yotta Data Services dedicated USD 1 billion to Nvidia H100 GPUs, signaling a pivot to AI-driven infrastructure. Aurum Equity Partners followed with a USD 400 million fund for a green AI data center in Hyderabad. Collectively, these commitments affirm stakeholders’ vision of India as a cornerstone of the global digital economy, far beyond a mere regional contender.
Land Acquisition Trends Reveal Strategic Real Estate Consolidation
The scramble for prime real estate is reshaping the India data center market’s physical footprint, as developers race to lock in land for future growth. In 2024 alone, they acquired roughly 200 acres dedicated to data centers, building on hyperscalers’ 440 acres secured over the past five years to enable long-term scalability. Tech giants are at the forefront—Microsoft, for example, snapped up a 48-acre parcel in Hyderabad for USD 32 million, paving the way for expansive campus developments.
This strategic land banking intensifies in key metros, amplifying competition. NTT grabbed 2.39 acres in Mumbai for USD 103 million, Digital Connexion claimed 2.15 acres nearby for expansion, Equinix bolstered its presence with 1.38 acres at USD 18.6 million, and CtrlS landed a whopping 40-acre plot for its Chandanvelly Datacenter Park. These high-stakes deals reveal a cutthroat landscape where land control rivals infrastructure builds in importance.
Submarine Cable Systems Boost Global Connectivity and Bandwidth
Robust connectivity infrastructure is catapulting the India data center market into a premier global data hub. Spearheading this, the 2Africa Pearls subsea cable—spanning 45,000 km across 33 countries—launched in October 2024 with 180 Tbps capacity. Ambitious projects follow suit: the India-Asia-Express (IAX) arrives in March 2025, delivering over 200 Tbps along 16,000 km, while the India-Europe-Express (IEX) matches that bandwidth.
Complementing these international links, domestic cables supply the backbone for booming demand. The MIST system between Mumbai and Chennai boasts 218 Tbps, and SEA-ME-WE 6 adds 126 Tbps starting in 2025. Together, these massive bandwidth arteries enable low-latency global traffic handling, cementing India’s status as an essential node in the worldwide internet architecture.
Compute Densities Surge to Support Generative AI Workloads
Artificial Intelligence is driving a fundamental redesign of facilities in the India data center market, pushing power densities to new extremes. For instance, Nvidia’s NVL 72 racks, deployed for high-performance tasks, already demand 140 kW per rack, while future Ruben Vera designs could hit a staggering 370 kW. Operators like CtrlS are adapting swiftly—their Chandanvelly buildings handle up to 135 kW per rack, with immersion cooling solutions scaling to 300 kW.
Colocation providers are racing to support 100 kW+ densities, led by Yotta Data Services’ order of 16,000 Nvidia H100 GPUs in 2024, targeting 32,000 by March 2025. This upgrade frenzy marks a clear pivot from basic storage to high-performance computing, directly addressing the explosion in AI training and inference workloads.
AdaniConneX Pipeline Demonstrates Massive Gigawatt Scale Ambitions
AdaniConneX stands as a prime example of the massive scale transforming the India data center market, with 1 GW of planned capacity nationwide. Its flagship Navi Mumbai facility targets a whopping 1,000 MW IT load, complemented by Hyderabad’s 600 MW campus, Pune’s 250 MW site, Noida’s 150 MW build, and Chennai 1’s solid 33 MW contribution.
Execution is gaining steam for this powerhouse: by early 2025, 17 MW was already live, with a robust 210 MW under construction. This single entity’s aggressive pipeline perfectly illustrates the industry’s leap toward gigawatt-scale campuses, set to redefine regional infrastructure over the next decade.
Regional Hubs and Government Policy Fuel Nationwide Expansion
Growth in the India data center market is surging beyond traditional metros into dynamic emerging hubs. CtrlS has operationalized Phase 1 of Kolkata DC-1 at 16 MW across a planned 44,000 sq ft footprint, while building a 12 MW AI-ready facility in Bhopal with USD 60 million investment. Kolkata shines brightest, poised for 48% CAGR, attracting pours like STT GDC’s USD 420 million for Hyderabad and Web Werks’ USD 215 million in Chennai.
Fueling this nationwide push, government policies provide powerful catalysts. The Cabinet’s USD 1.24 billion IndiaAI Mission targets 10,000 GPUs, Andhra Pradesh’s Policy 4.0 slashes transmission charges by 20-30%, and the 500 GW renewables goal by 2030 bolsters green efforts. With state backing—such as STT GDC’s USD 229 million Tamil Nadu MOU and NTT’s USD 240 million Kolkata plan—the sector thrives in a highly supportive regulatory landscape.
Need a Customized Version? Request It Now: https://www.astuteanalytica.com/ask-for-customization/india-data-center-market
Top Players in India Data Center Market
- Tata Communications Ltd
- STT GDC INDIA Pvt Ltd
- Datacenters Ltd
- Sify Technologies
- Netmagic Solutions Pvt Ltd
- Web Werks India Pvt Ltd
- ESDS Software Solutions Ltd
- NxtGen Datacenter and Cloud Technologies Pvt Ltd
- GPX India Pvt Ltd
- Yotta Data Services Pvt. Ltd
Market Segmentation Overview:
By Hardware
- Servers
- Blade servers
- Rack servers
- Tower servers
- Micro servers
- Storage Systems
- Storage Area Network (SAN)
- Network-Attached Storage (NAS)
- Direct-Attached Storage (DAS)
- Cloud storage
- Power and Cooling Systems
- Power Supply
- Uninterruptible Power Supply (UPS) systems
- Generators
- Power distribution units (PDUs)
- Cooling Solutions
- Air conditioning units
- Liquid Cooling Systems
- Advanced Cooling Technologies
- Power Supply
- Racks and Enclosures
- Open frame racks
- Enclosed Racks
- Customized Enclosures
By End Users
- IT and Telecom
- Banking, Financial Services, and Insurance (BFSI)
- Healthcare
- Government
- Manufacturing
- Others
Want Clarity on Report Coverage? Schedule a Quick Demo Call: https://www.astuteanalytica.com/report-walkthrough/india-data-center-market
About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.
Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: [email protected]
Website: https://www.astuteanalytica.com/
Follow us on: LinkedIn | Twitter | YouTube
CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: [email protected] Website: https://www.astuteanalytica.com/
Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. IndiaChron.com takes no editorial responsibility for the same.