Delhi-NCR Data Center Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 28.02 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Delhi-NCR Data Center Market Analysis
The Delhi-NCR Data Center market was valued at 151.9 MW in the previous year, and it is expected to rise to 826.6 MW, to witness a CAGR of 28.02% during the forecast period. A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.
- The pandemic triggered a fresh wave of digital revolution across the region. Businesses are increasingly turning to third-party colocation facilities for data center operations, which is complemented by a growing shift toward a hybrid IT approach that combines the capabilities of hosted data centers and multi-cloud configurations.
- The need for cloud-based solutions has grown nationwide because of increased technology usage and consumer desire for the cloud, which allows access to data from remote locations. As more organizations recognize the value of saving money and resources by transferring data to the cloud rather than constructing and maintaining on-premise infrastructure, the demand for cloud-based solutions and, as a result, the adoption of cloud-based data centers across the country has surged.
- To encourage the establishment of Data Centres and Services in India, the Indian government has allocated INR 12,000 crores in sops and incentives. In addition to offering real estate help and consulting, the government plans to invest INR 3L crore over the next five years, along with financial incentives up to 3-4% of the overall cost.
- One of the significant challenges that data center operators confront in Delhi is the rising cost of land acquisition, which raises the initial expenditure required to set up a data center. Because most existing availability zones are in formerly industrial areas rapidly becoming mainstream, alternatives are limited, and land costs are rising. Furthermore, land titles in the region frequently need to be clarified. This has become a problem for data center operators.
- Furthermore, the COVID-19 outbreak significantly influenced the country, hurting local data center service providers. Again, due to the country's extensive travel ban, many organizations resorted to working from home, dramatically increasing data traffic and putting pressure on the data center's capabilities to prevent downtime.
Delhi-NCR Data Center Market Trends
Smartphones To Drive the Market Growth
- In terms of average smartphone data usage, India is currently the second-highest in the world, with 14.6 GB per month. In 2026, it is expected to increase by more than four times to reach 41 EB per month. According to the analysis, India is predicted to gain another 430 million smartphone subscriptions throughout the forecast period, bringing the total to more than 1.2 billion by 2026.
- According to an Ericsson mobility analysis, there were 810 million smartphone subscriptions in 2020. That number is projected to increase to over 1.2 billion by 2026 at a compound annual growth rate (CAGR) of 7%. Due to the country's increasing smartphone adoption, smartphone subscriptions made up 72% of all mobile subscriptions in 2020 and are expected to reach over 98% in 2026.
- Even though data surge is a global phenomenon, Delhi is quickly becoming a hub for data consumption. An Indian smartphone user uses roughly 9.8 GB of data each month. Data usage will almost double over the next five years due to the allure of on-demand video, intense gaming, and easy online shopping. They have devoured the internet world and turned into active netizens thanks to better networks and more reasonable tariffs. To maintain interest in this new wave, local businesses and hyperscalers are producing more and more material in the local vernacular.
- The future of the Delhi-NCR region data center business is bright. Data centers will play a more significant role in the nation's development as the Indian economy grows and digital technologies are more widely utilized. Due to increasing reliance on digital connections, the upcoming rollout of 5G, and the growing use of IoT-connected items, demand is expected to rise even more. With the right policies in place, India has the potential to dominate the use and growth of data centers on a global scale.
- Several state governments, including those in Uttar Pradesh, have established their plans to encourage the establishment of data centers through cost and power subsidies, stamp duty exemptions, discounts on renewable energy sources, and local IT component purchases.
Tier 3 is expected to hold significant share of market
- Infrastructure for concurrently maintainable sites is the term used to describe this Tier-3. Almost all physical incidents are protected from this tier-3 data center level. It offers numerous independent distribution pathways as well as redundant-capacity components. Each component can be removed or changed at this level without affecting the services provided to end users, which is another crucial action.
- Demand for cloud services has increased due to the pandemic, with requires continuous data backup, and digital transformation is speeding up in all industries. Hyperscale data centers have seen an increase in investment due to the cloud transition. In direct proportion to the growth in data consumption and use of the cloud, the necessity for data centers has increased tremendously.
- For larger enterprises, Tier III data center standards guarantee high availability and dependability through power, cooling, and building infrastructure requirements. A Tier III data center is equipped with several channels for electricity and cooling and methods for updating and maintaining it without bringing it offline. For all power, cooling, and distribution systems, it demands concurrent maintainability and at least n+1 redundancy. An estimated uptime for a Tier III data center is 99.982%, with a maximum of 1.6 hours of downtime per year. Some Tier III data centers, referred to as Tier III+ in the industry, provide fully fault-resistant hardware and 2N or N+1 for all systems and infrastructure. Accordingly, the Indian IT ministry intends to provide incentives for data centers within a national policy framework valued at up to INR 15,000 crores. According to a policy draft, the government plans to invest up to INR 3 lakh crores in the data center ecosystem in the next five years. Mumbai and Delhi-NCR are Google's two cloud computing hubs in India.
- Additionally, Indian data center operators have invested in technology to offer their clients the best services possible. When a company has access to scalable cloud services, it may compete successfully without being concerned about the declining returns that come with expansion. The data center provider ensures there are enough resources to handle increased resource demand. The scalability choices of data center services drive demand for data centers.
Delhi-NCR Data Center Industry Overview
The Delhi-NCR Data Center Market is fragmented in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some players include NTT Data, Nextra Data Limited, CtrlS, STT Telemedia, and Yotta Infrastructure Solutions Llp.
In July 2022, the Government of India announced the inauguration of a data center park in Uttar Pradesh. The data center is spread over 3 lakh square feet. It will incorporate six data center buildings and store 30,000 server racks delivering 250 MW of IT power.
In February 2022, SifyTechnologies Limited committed significantly to renewable energy for its expanding network of data centers there. The firm recently finished power purchase contracts with Blue Leaf Energy's majority-owned subsidiary Vibrant Energy Holdings. This cooperation represents the first stage in a well-defined plan for the company to cut its reliance on fossil fuels to power it drastically is quickly expanding its data center business.
Delhi-NCR Data Center Market Leaders
STT Telemedia
CtrlS
NTT Data
Nxtra Data Limited
Yotta Infrastructure Solutions Llp
*Disclaimer: Major Players sorted in no particular order
Delhi-NCR Data Center Market News
- Jun 2022: The Uttar Pradesh government approved proposals to set up four data center parks with an investment of over INR 15,950 crore. Under the Data CenterPolicy 2021, recommendations of various investors to set up 4 data center parks with an investment of more than INR 15,950 crores were approved. This will employ about 4,000 people directly or indirectly.
- Jun 2022: According to records obtained by CRE Matrix, Adani Enterprises leased 4.64 lakh square feet of space at its data center in Noida to Raiden Infotech, a Google subsidiary, for INR 11 crore per month. According to the records obtained by the data analytics firm, D C Development Noida Ltd, a subsidiary of Adani Enterprises Ltd, leased 4,64,460 square feet of space at the Adani data center in Sector-62, Noida, for 10 years.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
4.1 Smartphone Users
4.2 Data Traffic per Smartphone
4.3 Mobile Data Speed
4.4 Broadband Data Speed
4.5 Regulatory Framework
4.6 Value Chain Analysis
5. MARKET OUTLOOK
5.1 IT Load Capacity
5.2 Raised Floor Space
5.3 Number of Racks
6. MARKET SEGMENTATION
6.1 By DC Size
6.1.1 Small
6.1.2 Medium
6.1.3 Large
6.1.4 Massive
6.1.5 Mega
6.2 By Tier Type
6.2.1 Tier 1 and 2
6.2.2 Tier 3
6.2.3 Tier 4
6.3 By Absorption
6.3.1 Utilized
6.3.1.1 By Colocation Type
6.3.1.1.1 Retail
6.3.1.1.2 Wholesale
6.3.1.1.3 Hyperscale
6.3.1.2 By End User
6.3.1.2.1 Cloud and IT
6.3.1.2.2 Telecom
6.3.1.2.3 Media and Entertainment
6.3.1.2.4 Government
6.3.1.2.5 BFSI
6.3.1.2.6 Manufacturing
6.3.1.2.7 E-Commerce
6.3.1.2.8 Other End Users
6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
7.1 Company Profiles
7.1.1 Sify Technologies Limited
7.1.2 STT Telemedia
7.1.3 CtrlS
7.1.4 NTT Data
7.1.5 Equinix
7.1.6 Nxtra Data Limited
7.1.7 WEB Werks India Private Limited
7.1.8 Yotta Infrastructure Solutions Llp
7.1.9 Pi Data Center Pvt Ltd
7.1.10 Go4hosting
- *List Not Exhaustive
7.2 Market Share Analysis (In terms of MW)
7.3 List of Companies
Delhi-NCR Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The Delhi-NCR Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, and Mega), Tier Type (Tier 1 and 2, Tier 3, and Tier 4), and Absorption (Utilized (Colocation Type (Retail, Wholescale, and Hyperscale), End User (Cloud and IT, Telecom, Media and Entertainment, Government, BFSI, Manufacturing, and E-Commerce)), and Non-Utilized). The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
| By DC Size | |
| Small | |
| Medium | |
| Large | |
| Massive | |
| Mega |
| By Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| By Absorption | |||||||||||||||||
| |||||||||||||||||
| Non-Utilized |
Frequently Asked Questions
What is the current Delhi-NCR Data Center Market size?
The Delhi-NCR Data Center Market is projected to register a CAGR of 28.02% during the forecast period (2024-2030)
Who are the key players in Delhi-NCR Data Center Market?
STT Telemedia, CtrlS, NTT Data, Nxtra Data Limited and Yotta Infrastructure Solutions Llp are the major companies operating in the Delhi-NCR Data Center Market.
What years does this Delhi-NCR Data Center Market cover?
The report covers the Delhi-NCR Data Center Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Delhi-NCR Data Center Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Delhi-NCR Data Center Industry Report
Statistics for the 2024 Delhi-NCR Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Delhi-NCR Data Center analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
