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India Data Center Market Size to Cross over $4.5 Billion by 2025

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India Data Center Market Size to Cross over $4.5 Billion by 2025


Pi Datacenter, CtrlS, Sify Technologies, Airtel(Nxtra)National Informatics Center, National Payment Corporation of India, and Bridge Data Center are some of the prominent investors in the data center market in India.  The Indian cloud market is estimated to be $4.5 billion by 2020The IaaS adoption is likely to grow at a CAGR of 20% between 2020 and 2025. Data localisation is likely to increase the physical presence of cloud service providers, thereby increasing data center service revenue in the country.  State governments in the country are attracting Foreign Direct Investment (FDI) through tax incentives. Maharashtra, Andhra Pradesh, and Telangana have announced incentives for data center development in the last two years. It will also support the steady growth of wholesale colocation. The majority of local data center service providers offer cloud-based services to end-users in India, which contributes to their data center service revenue.

India Data Center Market – Segmentation

  • On-premise data centers procure less than <250 kVA UPS systems, whereas UPSs with capacity of over 750 kVA are also observing adoption by colocation providers. VRLA UPS systems are dominating the market with an adoption rate of more than 90%. However, it is estimated that lithium-ion UPS systems will gain a share of around 25% by 2025. GPX Global System opened its Mumbai data center in 2019, which included the use of Eaton UPS powered by lithium-ion batteries. These batteries offer power backup up to 72 hours.
  • Existing data centers in India have majorly installed racks of 42U and 47U configuration. NETRACK have a strong presence in the Indian market, supplying racks to data center and telecommunication service providers. Hyperscale build-to-suit development to support deployment of OCP-rack architecture, which will, in turn, is likely to increase adoption of 48U racks.
  • Expertise specific to data center installation and commissioning processes is growing as the investment is triggering new job opportunities in the country. India has high availability of skilled labors. However, skilled labor specific to the data center industry is expected to grow during the forecast period. The average pay for a data center engineer is around $10,000–15,000 per annum.

Market Segmentation by IT Infrastructure

  • Servers
  • Storage Systems
  • Network Infrastructure

Market Segmentation by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer, Switches & Switchgears
  • Rack PDUs
  • Other Electrical Infrastructure

Market Segmentation by Mechanical Infrastructure

  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure

Market Segmentation by General Construction

  • Building Development
  • Installation & Commissioning Services
  • Building Design
  • Physical Security
  • Data Center Infrastructure Management (DCIM)

Market Segmentation by Tier Standard

  • Tier I & Tier II
  • Tier III
  • Tier IV

Market Segmentation by Geography

  • Maharashtra
  • Karnataka
  • Telangana & AP
  • Other Cities

India Data Center Market – Dynamics

Data localisation laws will have a higher impact on cloud data center investments in India. They will also support the strong growth of wholesale colocation. In 2019, Oracle launched cloud data Mumbai, with plans to open second cloud region in Hyderabad which was opened recently post covid 19 lockdown. Microsoft enters into a 10-year partnership agreement with Reliance Communication to establish the Azure platform across multiple data centers in India. These data centers will be built and operated by Reliance Communications and will deliver cloud-based services to SMEs across India.  On March 2020, Google announced to open its second cloud region in Delhi, which is expected to be operational by the end of 2020. Amazon Web Services is planning to develop data center in Hyderabad. Majority of local data center service providers, including Sify Technologies, CtrlS, NTT Global Data Centres, and Reliance Communications, offer cloud-based services to end-users in India, which contributes to minimum 20% to the data center service revenue.

Key Drivers and Trends fueling Market Growth:

  • Hyperscale Colocation Investments on the Rise
  • Government supports Growing Digital Economy
  • IoT Surge to Increase Demand Data Center Deployment
  • Impact of Data Localization

Key Market Participants

  • IT Infrastructure Providers
    1. Arista
    2. Atos
    3. Broadcom
    4. Cisco
    5. Dell Technologies
    6. Hewlett Packard Enterprise
    7. Huawei
    8. IBM
    9. Lenovo
    10. NetApp
  • Construction Service Providers
    1. AECOM
    2. Sterling & Wilson
    3. DSCO Group
    4. VastuNidhi Architects
    5. Nikom InfraSolutions
    6. L&T Construction
  • Support Infrastructure Providers
    1. ABB
    2. Caterpillar
    3. Cummins
    4. Eaton
    5. Delta Group
    6. Legrand
    7. NetRack Enclosures
    8. Riello UPS
    9. Rittal
    10. Schneider Electric
    11. Stulz
    12. Vertiv
  • Data Center Investors
    1. Bharti Airtel (NXTRA DATA)
    2. Bridge Data Centres
    3. Colt Data Centre Services (Colt DCS)
    4. CtrlS
    5. GPX Global Systems
    6. NTT Global Data Centers
    8. Rack Bank
    9. Reliance Communications
    10. Sify Technology
    11. ST Telemedia Global Data Centres (STT GDC)
    12. Streamcast Group
    13. Web Werks
    14. Yotta Infrastructure Solutions

If you wish to know more about the current trends & insights in Indian Data Center Industry write into

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