Market Size of Delhi-NCR Data Center Industry
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.