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Indian data centres: pivotal trends to watch in 2025!

India’s data centre market is poised for explosive growth driven by government initiatives and emerging technologies.

The country’s data centre market is expected to reach $10 billion by 2026, with a compound annual growth rate (CAGR) of 25% from 2020 to 2026.

Market Overview

The Indian data centre market has experienced significant growth in recent years, driven by the increasing demand for cloud computing, artificial intelligence, and big data analytics. The market is expected to continue growing, driven by the government’s initiatives to promote digitalization and the growing adoption of emerging technologies. Key drivers of growth: + Increasing demand for cloud computing and data storage + Growing adoption of emerging technologies such as AI, IoT, and 5G + Government initiatives to promote digitalization + Rising demand for data analytics and big data processing

Market Size and Capacity

The Indian data centre market is expected to reach $10 billion by 2026, with a compound annual growth rate (CAGR) of 25% from 2020 to 2026.

The Rise of Large-Scale Data Centres in India

The Indian data centre market has witnessed significant growth in recent years, driven by the increasing demand for cloud computing, digital transformation, and the need for reliable and secure data storage. As a result, data centre operators are investing heavily in large-scale projects with capacities of over 100+ MW, primarily in Navi Mumbai and Chennai.

Navi Mumbai: A Hub for Large-Scale Data Centres

Navi Mumbai, a special economic zone (SEZ) located in the western part of Mumbai, has emerged as a preferred location for large-scale data centre projects. The region’s proximity to Mumbai, its well-developed infrastructure, and the availability of skilled labour make it an attractive destination for data centre operators. Key factors driving the growth of large-scale data centres in Navi Mumbai: + Proximity to Mumbai: Easy access to the city’s large market and skilled workforce. + Well-developed infrastructure: Availability of reliable power, water, and transportation facilities.

Rapid AI Adoption Drives India’s Growing Market.

The AI market in India is expected to reach $10.8 billion by 2028, with the data analytics segment expected to be the largest contributor.

The AI Market in India: A Growing Industry

The artificial intelligence (AI) market in India is experiencing rapid growth, driven by increasing demand for AI-powered solutions across various industries. According to NASSCOM, the market is expected to grow at a compound annual growth rate (CAGR) of over 20% between 2023 and 2028. This growth is driven by the increasing adoption of AI technologies in various sectors, including healthcare, finance, and education.

Key Drivers of Growth

Several factors are contributing to the growth of the AI market in India.

Benefits of Cloud Computing

Cloud computing offers numerous benefits, including:

  • Scalability: Cloud computing allows businesses to scale up or down as needed, without having to invest in new hardware or software. Flexibility: Cloud computing enables users to access their data and applications from anywhere, at any time, using any device with an internet connection. Cost-effectiveness: Cloud computing reduces costs associated with traditional IT infrastructure, such as hardware, software, and maintenance. Reliability: Cloud computing provides a reliable and secure way to store and process data, with built-in redundancy and backup systems. Collaboration: Cloud computing enables real-time collaboration and communication among team members, regardless of their location. ## Training and Development*

    • Training and Development

    Efforts on training programs and learning centers for skill development in hardware, software, and data center operations and IT infrastructure management have improved.

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