India’s digital infrastructure has been expanding rapidly; by the end of 2024, it is anticipated that the country’s data center capacity would have surpassed 1,300 MW, a major increase over prior years. The quick digitization of businesses, improvements in tech infrastructure, and the introduction of new technologies like blockchain, 5G, AI, and cloud computing are all credited with this increase.
Top 7 Cities Dominating Data Center Concentration
Seven cities account for a significant portion of the data center stock in India: Mumbai-Navi Mumbai, Chennai, Delhi-NCR, Bengaluru, Pune, Hyderabad, and Kolkata. By the end of 2023, these cities accounted for around 88% of the country’s data center stock. But tier 2 cities like Dehra Dun, Nagpur, Bhubaneshwar, Vishakapatnam, and Guwahati are starting to emerge as possible hubs for data center expansion.
Leading Data Center Markets
- Mumbai-Navi Mumbai
- As of the end of 2023, Mumbai-Navi Mumbai will have a 52% share of India’s total data center capacity.
- By the end of 2024, the region is predicted to lead in supply addition, accounting for about 46% of the projected ~500 MW capacity.
- Chennai
- By the end of 2024, Chennai is expected to hold 21% of the projected ~500 MW supply, having accounted for 16% of the overall stock of data centers in the top 7 cities in 2023.
3. Delhi-NCR
- In terms of installed co-location capacity, Delhi-NCR, and especially Noida, are quickly becoming important regional hubs. By 2024, installed data center capacity is predicted to surpass Bengaluru’s.
- Bengaluru
- Bengaluru accounted for approximately 10% of data center stock by the end of 2023, with further growth expected in the coming years.
5. Emerging Markets
- In line with the industry’s shift towards diversification, Tier 2 cities like Guwahati, Vishakapatnam, Bhubaneshwar, Nagpur, and Dehra Dun are also becoming more and more attractive as possible sites for data center expansion.
Major Data Center Projects in India
- AdaniConnex
This joint venture between Adani Enterprises and EdgeConnex Inc has invested significantly in data center infrastructure and is in the process of raising additional funds for expansion.
- Sify
Chennai-based Sify has raised funds for new data centers and partnered with Kotak Data Center Fund for investments in subsidiary Sify Infiniti Spaces.
- STT GDC
With the construction of two additional data centers in Pune’s Dighi neighborhood, STT GDC has invested almost Rs 2,000 crore, bringing its total capacity to over 80 MW of IT load in this hub alone.
- Web Werks
Web Werks, in a joint venture with Iron Mountain, plans to invest around Rs 7,500 crore to set up data centers in major Indian cities, significantly increasing its total capacity by 2026.
- Tata Communications
Leading the way in the digital ecosystem on a worldwide scale, Tata Communications provides a variety of services, such as cloud, connectivity, and security solutions. Its data centers are dispersed throughout the nation and are well-known for their strong infrastructure, high uptime, and vast network connectivity, which makes it a top option for businesses globally.
- CtrlS
CtrlS, Asia’s largest Tier-4 Data Centre, offers unparalleled security and reliability. CtrlS caters to critical sectors such as banking, insurance, and e-commerce, providing them with a secure environment for their data.
- Yotta
Yotta Infrastructure, a division of the Hiranandani Group, is causing a stir with its hyper-scale data centers. With services like managed hosting, IT services, and colocation, Yotta seeks to meet India’s expanding need for data processing and storage. Located in Navi Mumbai, its Yotta NM1 Data Centre is one of the biggest in Asia.
- Netmagic (An NTT Communications Company)
A division of NTT Communications, Netmagic offers a comprehensive range of managed IT services as well as data center services. It is renowned for its attentive customer service and operational competence. The high performance, scalability, and security features of Netmagic’s data centers enable them to meet the needs of both domestic and foreign customers.
Future Projections and Conclusion
The introduction of 5G services, the expansion of global hyperscalers’ facilities, and the arrival of new operators are all expected to propel the data center market in India’s direction. Efficiency, dependability, sustainability, and environmental sensitivity are all areas that the business is focusing on more and more, which is paving the way for a competitive and vibrant future.
In conclusion, the data center market in India in 2024 is a healthy and quickly developing one, with significant investments and expansions influencing the nation’s future digital infrastructure.