India Data Centres 2H/2024

INDIA’S DATA CENTRE MARKET: GROWTH DRIVERS

The Indian data centre industry is witnessing robust growth in an era of digital transformation. The need for data centres has witnessed a consistent rise in recent years owing to various factors, including the escalating utilization of cloud computing, the expansion of big data, the emergence of the Internet of Things (IoT), Artificial Intelligence (AI), the growth of e-Commerce and quick commerce sectors and the proliferation of mobile devices and digital transformation initiatives by private and public sector organizations.

Government initiatives such as Digital India and an emphasis on self-reliance and data protection through data localization is expected to increase the volume of data in the country. The government is increasingly reliant on data centres for the Government-to-Citizen (G2C) delivery platforms, such as the National e-Governance Plan (NeGP), e-Visa, and National CSR Data portal to name a few, these will result in an increased demand for data centres and cloud services.

INDIA’S DATA CENTRE MARKET: GROWTH HUBS

Data centres in India are primarily concentrated in Mumbai, Chennai, Bengaluru, Hyderabad, and Delhi-NCR due to their connectivity, infrastructure, energy availability, and demand from enterprises and cloud service providers. Mumbai is often regarded as the data centre capital of India due to its robust infrastructure, proximity to undersea data cable landing stations, and financial hub status. It is followed by Chennai, a key location for data centres, thanks to multiple submarine data cable landings which make it ideal for connectivity to global networks.

Bengaluru, Pune, Delhi-NCR, Hyderabad are also witnessing significant traction as growing hubs for data centres, driven by their thriving IT industries, while surge in activity has been witnessed in several Tier-II and III cities due to growing demand for edge data centres.