India’s data centre construction market to reach $3.5B by 2028 estimates Arizton
According to Arizton’s latest research report, the India data center construction market will grow at a CAGR of 15% from 2022-2028. Adopting advanced technological solutions that include IoT, big data, and AI increases the demand for cloud services across verticals. Some of India’s largest cloud service providers will create opportunities for data center operators to develop more facilities during the forecast period. Cloud computing is an innovation that transforms the banking business.
Around 80% of corporate banks in India expect to operate their trade finance and treasury workloads on cloud technology by 2024. 5G deployment to increase edge data center investments, procurement of renewable energy in data centers, growing rack power density, and availability of liquid cooling to support AI & ML workloads are driving the growth of the India data center construction market.
India Data Center Construction Market Report
| Report Attributes | Details |
| Market Size (2028) | USD 3.46 Billion |
| Market Size (2022) | USD 1.52 Billion |
| CAGR by Revenue (2022-2028) | 15 % |
| Market Size -Area (2028) | 3.585 Million Square Feet |
| Power Capacity (2028) | 575 MW |
| Base Year | 2022 |
| Forecast Year | 2023-2028 |
| Market Segmentation | Facility Type, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, General Construction, Tier Standards, and Geography |
| Geographic Analysis | India |
| Countries Covered | Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, and Other States |
| Page Number | 281 |
| Market Dynamics | · Rise in Investments from Colocation Providers
· Government Aid in Growing the Digital Economy & Data Center Investments · Cloud Adoption Increasing Data Center Investments · Big Data & IoT Driving Data Center Investments |
Recent Investments
- In November 2022, AWS announced the launch of its new cloud region in Hyderabad.
- The increased data generation will fuel the demand for large storage facilities in India. India witnesses continuous investments in cloud adoption and Big data analytics from small and medium-sized industries.
- Indian companies, such as Adani Group and Hiranandani Group, and foreign investors, such as Microsoft, EdgeConnex, CapitaLand, Amazon, and the Mantra Group, invest in data centers in India. Existing companies, such as STT India, CtrlS, and Nxtra by Airtel, also increase their presence and capacities in the country.
- Yotta Infrastructure, NTT Global Data Centers, and ST Telemedia Global Data Centres India have expanded their presence in India with several hyperscale data center developments across Mumbai, Tamil Nadu, and Uttar Pradesh.
- In recent years, state governments in India invested in constructing and expanding State Data Centers (SDCs). Data center development in India is also carried out by central government agencies, such as the National Informatics Centre (NIC) and the National Payment Corporation of India (NCPI).
- In 2022, the market garnered investments in over 20 projects, with Maharashtra dominating the market, followed by Tamil Nadu, Uttar Pradesh, Telangana, and other states in the country, which also accounted for many projects.
- Adani Group formed a joint venture called AdaniConneX with EdgeConneX, a global data center provider, to build multiple hyperscale data centers with a cumulative capacity of 1 GW in Chennai, Mumbai, Noida, Vizag, and Hyderabad.
Geographical Analysis
India has been and will be the preferred market for data center providers. The rising demand for on-demand video, mobile gaming, and online content will be a stronger force for data center procurement in the country. States such as Maharashtra, Tamil Nadu, Telangana, and Uttar Pradesh are witnessing growth in artificial intelligence, IoT, virtual reality, online payment systems, and smart solutions. Such factors are anticipated to attract investments into the country and boost the India data center construction market. Maharashtra led the data center in India, contributing 54.13% of investments, followed by Tamil Nadu, Telangana, and others.
The State Government of Maharashtra has developed a new Renewable Energy Policy, which aims to implement 17.36 GW of transmission system-connected power projects by 2025. In August 2022, the Madhya Pradesh government announced that it had set a target to achieve a green energy generation capacity of around 20 GW by 2030. Further, in August 2022, the Uttar Pradesh government announced that it had released a draft of Solar Energy Policy 2022 and planning to establish 20 solar cities over the next five years.
