India Artificial Intelligence (AI) Optimised Data Center Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.19 Billion |
| Market Size (2030) | USD 3.10 Billion |
| CAGR (2025 - 2030) | 21.08% |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
India Artificial Intelligence (AI) Optimised Data Center Market Analysis
The India Artificial Intelligence Optimised Data Center Market size is estimated at USD 1.19 billion in 2025, and is expected to reach USD 3.10 billion by 2030, at a CAGR of 21.08% during the forecast period (2025-2030).
India's data center market is experiencing significant growth, driven by the increasing adoption of artificial intelligence (AI) and advanced technologies. AI is reshaping operational efficiencies by optimizing resource allocation, improving energy utilization, and enabling predictive maintenance. These advancements are fueling the demand for scalable data storage and processing infrastructure, positioning data centers as a cornerstone of India's digital economy. The nation's strategic focus on AI adoption reflects its ambition to establish itself as a global leader in digital transformation.
The IndiaAI Mission represents a key government initiative aimed at addressing the country's computing capacity requirements and fostering a robust AI ecosystem. This mission underscores the government's commitment to strengthening AI infrastructure and driving innovation in the sector.
In March 2024, the Indian government approved an investment of approximately USD 1.24 billion for the IndiaAI Mission. A significant portion, 44% of the budget, has been allocated to developing a compute capacity exceeding 10,000 GPUs over five years. GPUs, critical for AI processing, are increasingly integral to data centers, delivering high-performance capabilities for AI training and inference. This initiative is expected to accelerate AI advancements and enhance the nation's technological capabilities.
India is set to experience substantial growth in AI-powered data centers, driven by the rapid adoption of digital transformation and government initiatives such as Digital India. The rising demand for cloud services, edge computing, and AI applications is anticipated to propel the expansion of AI-integrated data centers.
These facilities will prioritize energy-efficient operations, advanced cooling technologies, and scalable infrastructure to support AI-driven workloads. Furthermore, partnerships between global technology leaders and Indian businesses are expected to accelerate the development of innovative AI data center solutions tailored to the Indian market.
India Artificial Intelligence (AI) Optimised Data Center Market Trends
AI Workloads Driving Massive Data Center Expansion
India’s data center industry is experiencing rapid growth, driven by the increasing demand for AI workloads. This growth is fueled by the adoption of AI technologies, including generative AI and machine learning, which require advanced computational infrastructure.
In March 2024, the Ministry of Electronics and Information Technology partnered with Nvidia to procure 10,000 Graphics Processing Units (GPUs) for startups to enhance AI capabilities. Additionally, the government announced a $1.25 billion investment in AI projects, focusing on improving computing infrastructure and developing large language models. These initiatives are expected to accelerate the development of AI-driven data centers in the country.
Geographically, India’s data center capacities are concentrated in major cities. Mumbai is projected to account for 40% of the new capacity due to its robust infrastructure and proximity to undersea cable landing stations. Chennai is expected to contribute 25%, while Hyderabad is anticipated to add 15% of the new capacity. This regional distribution highlights the strategic importance of location in optimizing connectivity and operational efficiency for data centers.
Investments in India’s data center sector are not only enhancing infrastructure but also driving innovation. For example, Nvidia expanded its partnerships in India by collaborating with Reliance Industries and launching an AI model for Hindi to cater to the growing AI market. Such initiatives are critical in building a sustainable ecosystem for AI-driven data centers, positioning India as a key player in the global data center landscape.
Hyperscale AI Data Center Expansion Fueled by Global and Domestic Investments
India's hyperscale AI data center market is experiencing rapid growth, driven by significant investments from both global and domestic players. By 2024, the country's data center capacity exceeded the 1 gigawatt (GW) mark, representing nearly a threefold increase over four years. This expansion is primarily fueled by the rising adoption of cloud computing, artificial intelligence (AI), the Internet of Things (IoT), and the accelerated growth of e-commerce and digital transformation initiatives.
As of February 2025, there were 153 data centers in India. Mumbai, with its 38 data centers, led the market. It was followed by Bengaluru, with 21 data centers. During the same period, the United States leads the world with more than five thousand data centers.
In March 2024, the Indian government approved the national-level IndiaAI mission with a budget allocation of ₹10,371.92 crore. This initiative aims to democratize computing access, enhance data quality, develop indigenous AI capabilities, attract top AI talent, foster industry collaboration, provide startup risk capital, and ensure the ethical use of AI. The government's active involvement has been a key factor in driving the growth of the hyperscale AI data center market in India.
India Artificial Intelligence (AI) Optimised Data Center Industry Overview
India's AI data center market is rapidly evolving, driven by increasing demand for advanced digital infrastructure to support artificial intelligence (AI), cloud computing, and other emerging technologies. Key players in this market include global giants such as Intel Corporation, NVIDIA Corporation, Cisco Systems, and Amazon Web Services (AWS), alongside prominent domestic firms like STT Global Data Centres India Private Limited. These companies are actively investing in expanding data center capacities, leveraging cutting-edge technologies to meet the growing needs of AI-driven applications and cloud services. The market's growth is further bolstered by the Indian government's initiatives, such as the IndiaAI mission, which aims to enhance AI capabilities and foster innovation within the country. Together, these factors position India as a significant player in the global AI data center landscape, with robust growth prospects in the coming years.
In April 2025, Intel announced plans to expand its AI data center operations in India, aiming to strengthen its presence in one of the fastest-growing technology markets. The company is focusing on developing advanced AI solutions tailored to meet the unique demands of the Indian market.
In January 2025, ST Telemedia Global Data Centres India Private Limited (STT GDC India), a premier data centre solutions provider, announced plans to establish an AI-ready data center in India with an investment of ₹3,500 crore. The data center aims for a capacity of up to 100 MW, boasting significant scalability for future expansion, positioning it among the nation's largest data centre undertakings. STT GDC India's expansion investment is part of its broader vision to achieve a design capacity of 1 GW across India in the next decade, with an investment outlook of around $3.2 billion. The company currently operates a data centre in HITEC City in Hyderabad, and this new campus will further solidify its presence in the country.
India Artificial Intelligence (AI) Optimised Data Center Market Leaders
-
NTT GDC India
-
STT GDC India
-
CtrlS Datacenters
-
Yotta Infrastructure
-
Nxtra by Airtel
- *Disclaimer: Major Players sorted in no particular order
India Artificial Intelligence (AI) Optimised Data Center Market News
- May 2025: India’s first AI data center park is being developed in Sector-22, Nava Raipur, by RackBank Datacenters Pvt Ltd. The project spans 5.5 hectares and includes a 2.7-hectare Special Economic Zone. It will feature GPU-based high-end computing infrastructure, starting with a 5 MW capacity in its first phase, scalable up to 150 MW. With an investment of ₹2,000 crore, the initiative is expected to generate 500 direct and 1,500 indirect jobs, prioritizing local employment. The park will integrate advanced systems such as GPU computing, AI workflows, data processing, and broadcast-level streaming, setting a benchmark in India’s digital infrastructure.
- January 2025: Microsoft announced plans to invest USD 3 billion in cloud and AI infrastructure in India, including the establishment of new data centers. This investment highlights the growing demand for AI processing capabilities and is expected to strengthen India's AI ecosystem, positioning the country as a key player in the global AI market.
India Artificial Intelligence (AI) Optimised Data Center Industry Segmentation
The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.
Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, and forecasts are presented in USD Billion for each segment.
| By Data Center Type | CSP Data Centers | ||
| Colocation Data Centers | |||
| Others (Enterprise and Edge) | |||
| By Component | Hardware | Power | |
| Cooling | |||
| IT Equipments | |||
| Others | |||
| Software Technology | Machine Learning | ||
| Deep Learning | |||
| Natural Language Processing | |||
| Computer Vision | |||
| Services - (Managed Services, Proffesional Services, etc) | |||
| CSP Data Centers |
| Colocation Data Centers |
| Others (Enterprise and Edge) |
| Hardware | Power |
| Cooling | |
| IT Equipments | |
| Others | |
| Software Technology | Machine Learning |
| Deep Learning | |
| Natural Language Processing | |
| Computer Vision | |
| Services - (Managed Services, Proffesional Services, etc) |
India Artificial Intelligence (AI) Optimised Data Center Market Research FAQs
How big is the India Artificial Intelligence Optimised Data Center Market?
The India Artificial Intelligence Optimised Data Center Market size is expected to reach USD 1.19 billion in 2025 and grow at a CAGR of 21.08% to reach USD 3.10 billion by 2030.
What is the current India Artificial Intelligence Optimised Data Center Market size?
In 2025, the India Artificial Intelligence Optimised Data Center Market size is expected to reach USD 1.19 billion.
Who are the key players in India Artificial Intelligence Optimised Data Center Market?
NTT GDC India, STT GDC India, CtrlS Datacenters, Yotta Infrastructure and Nxtra by Airtel are the major companies operating in the India Artificial Intelligence Optimised Data Center Market.
What years does this India Artificial Intelligence Optimised Data Center Market cover, and what was the market size in 2024?
In 2024, the India Artificial Intelligence Optimised Data Center Market size was estimated at USD 0.94 billion. The report covers the India Artificial Intelligence Optimised Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Artificial Intelligence Optimised Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
India Artificial Intelligence (AI) Optimised Data Center Industry Report
Statistics for the 2025 India Artificial Intelligence (AI) Optimised Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Artificial Intelligence (AI) Optimised Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
