According to Arizton’s latest research report, the India data center colocation market is growing at a CAGR of 24.68% during 2023-2029.
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Report Scope:
Market Size – Colocation Revenue: $4.50 Billion (2029)
CAGR – Colocation Revenue: 24.68% (2023-2029)
Market Size – Utilized White Floor Area: 13.25 Million Sq. ft (2029)
Market Size – Utilized Racks: 313.33 Thousand Units (2029)
Market Size – Utilized IT Power Capacity: 2,980 MW (2029)
Base Year: 2023
Forecast Year: 2024-2029
In 2023, India’s colocation operators had a total core & shell white floor area of over 5.76 million square feet, with approximately 4.68 million square feet utilized, representing 80% of the available space. India is one of the most cost-effective markets for data center development, with Mumbai’s construction cost at just $6.40/watt, the lowest globally. Maharashtra, Tamil Nadu, Telangana, and Uttar Pradesh contributed to 89% of the country’s total white floor additions, while other states like West Bengal and Karnataka accounted for the remaining 11%. Industrial hubs like Bengaluru, Chennai, and Noida continue to drive the country’s data center growth, supported by state incentives.
Colocation Future Demand by Industry – 2029
The AI revolution is set to drive increasing demand for hyperscale data center space from major global cloud operators like Amazon Web Services (AWS), Google, Meta, Microsoft, and Oracle. As a result, the cloud and IT sector is expected to account for 75% of colocation demand by 2029. The rise of AI startups, many of which will likely opt for managed hosting or colocation services, will further fuel this growth. In the past two years, new entrants focusing on the hyperscale segment have emerged, and with potential data localization laws from the Indian government, demand could surge even further.
India Dominance in the South Asian Colocation Market
India, with over 100 active colocation facilities built to Tier III standards, controls 90% of the South Asian market, a trend expected to continue due to strong demand from hyperscale cloud providers, OTT companies, and content providers. The market is home to several global and local operators, including NTT Global Data Centers, ST Telemedia, Nxtra by Airtel, Equinix, Sify Technologies, and Digital Realty, alongside rising entrants like Princeton Digital Group and Chindata Group. Demand for colocation services spans across sectors such as cloud & IT, BFSI, telecom, and government bodies. With cloud computing growth and rising edge deployments, colocation occupancy rates in India remain high, especially in Mumbai.
The Report Includes:
Vendor Landscape
The Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to gain a thorough understanding of the India data center colocation market. Request for Free Sample to get a glance of the report now: https://www.arizton.com/market-reports/india-data-center-colocation-market
What Key Findings Our Research Analysis Reveals?
What is the count of existing and upcoming colocation data center facilities in India?
What factors are driving India data center colocation market?
How much MW of IT power capacity is likely to be utilized in India by 2029?
Who are the new entrants in the Indian data center industry?
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