India Data Center Market Poised to Reach USD 7 Billion by 2030, Growing at a 12% CAGR

India Data Center Market Poised to Reach USD 7 Billion by 2030, Growing at a 12% CAGR

According to Next Move Strategy Consulting, the India Data Center Market size is predicted to reach USD 7 billion by 2030, at a CAGR of 12% till 2030.

The data center market, often referred to as the network infrastructure market, encompasses the full lifecycle of specialized infrastructure dedicated to hosting computing systems. It includes planning, construction, operation, and maintenance of essential components such as servers, storage systems, and networking equipment. These facilities support services like cloud computing and connectivity solutions.

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Key trends driving the market include the adoption of cloud services, the emergence of edge computing to minimize latency, heightened sustainability efforts, and the integration of hybrid and multi-cloud approaches. Furthermore, the deployment of 5G networks is accelerating the need for advanced data processing capabilities, enabling the sector to meet the increasing demand for digital services.

Key Growth Drivers

Growing ICT Sector

India's ambition to achieve a USD 1 trillion Information and Communication Technology (ICT) sector by 2025 highlights immense opportunities for the data center industry. In 2023 alone, the ICT sector is projected to grow to USD 245 billion, demonstrating an annual growth rate of 8.4%. As the fourth-largest data center industry in the Asia-Pacific region, India’s 152 operational centers (CloudScene data) underscore the sector’s pivotal role in advancing the nation’s digital infrastructure.

Expansion of Major Companies

Global players such as OVHcloud and Digital Realty are spearheading expansions in India to address surging data storage demands. OVHcloud’s Mumbai data center offers trusted, sustainable cloud solutions, while Digital Realty’s facility in Chennai focuses on providing high-density infrastructure. These efforts align with India’s growing needs for 5G, AI, and emerging technologies, reinforcing the industry’s trajectory toward growth.

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Challenges in the Market

Despite its promising growth, the data center market faces significant challenges:

  • High Initial Investments: The substantial financial commitments required for infrastructure development pose a barrier for smaller enterprises.
  • Stringent Environmental Regulations: Compliance with energy-efficient technologies necessitates ongoing investments, impacting overall market growth.

Opportunities with Edge Computing

The integration of edge computing presents lucrative opportunities by enabling real-time processing and reducing latency. This decentralized approach supports applications like IoT and AR, while also enhancing data security by localizing sensitive information. Investments in startups like Armada highlight the industry’s focus on addressing connectivity challenges and bridging the digital divide.

Competitive Landscape

Key players in the India data center market include:

  • Equinix
  • Digital Realty
  • Zenlayer
  • Amazon Web Services (AWS)
  • MOD Mission Critical (MOD)
  • IBM Cloud
  • EdgeConnex
  • Hivelocity
  • Microsoft Azure
  • Oracle

Conclusion

The India Data Center Market is poised for significant growth, driven by advancements in the ICT sector, strategic expansions by key players, and the adoption of emerging technologies such as edge computing. However, addressing challenges like high initial investments and compliance with environmental regulations will be critical for sustained growth. With robust demand and proactive initiatives, the sector is set to play a pivotal role in India’s digital transformation.

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Next Move Strategy Consulting is a premier market research and management consulting firm that has been committed to provide strategically analysed well documented latest research reports to its clients. The research industry is flooded with many firms to choose from, what makes Next Move different from the rest is its top-quality research and the obsession of turning data into knowledge by dissecting every bit of it and providing fact-based research recommendation that is supported by information collected from over 500 million websites, paid databases, industry journals and one on one consultations with industry experts across a diverse range of industry sectors. The high-quality customized research reports with actionable insights and excellent end-to-end customer service help our clients to take critical business decisions that enables them to move beyond time and have competitive edge in the industry.

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