India Data Center Market Size and Share

India Data Center Market (2025 - 2030)

India Data Center Market Analysis by Mordor Intelligence

India Data Center Market size is estimated at USD 10.11 billion in 2025, and is expected to reach USD 21.80 billion by 2030, at a CAGR of 16.61% during the forecast period (2025-2030). In terms of IT load capacity, the market is expected to grow from 4.48 thousand megawatt in 2025 to 12.47 thousand megawatt by 2030, at a CAGR of 22.72% during the forecast period (2025-2030). The market segment shares and estimates are calculated and reported in terms of MW. This sharp expansion stems from six forces: hyperscale cloud investments unlocked by Digital India incentives, explosive OTT traffic that pulls edge nodes into tier-2 cities, mandatory data localization rules, power purchase agreements that derisk renewable sourcing, submarine cable capacity that quadruples international bandwidth, and surging AI workloads that push rack densities above 50 kW. Cloud providers have lined up multi-billion-USD campuses, while domestic operators are pivoting to GPU-ready designs and renewable capacity additions. International connectivity upgrades at Mumbai and Chennai reduce latency for cross-border traffic, enhancing the attractiveness of the India data center market to Asia-Pacific interconnection hubs. Simultaneously, RBI and MeitY localization mandates create non-discretionary demand from BFSI and public-sector users, anchoring long-term utilization. Against this backdrop, operators with renewable power, high-density cooling, and coastal land banks are securing strategic advantages.

Key Report Takeaways

  • By data center type, colocation held 85.16% revenue share in 2024 in the India data center market ; hyperscale/self-built deployments are projected to advance at a 21.50% CAGR through 2030.
  • By end user, IT and telecom commanded 46.50% share in 2024 in the India data center market , while BFSI is set to log the fastest growth at 18.20% CAGR to 2030.
  • By tier type, Tier 3 facilities accounted for 49.61% of the India data center market share in 2024, whereas Tier 4 is on track to post a 20.55% CAGR through 2030.
  • By data center size, large facilities captured 22.43% share in 2024 in the India data center market and medium-sized sites are expected to grow at a 19.50% CAGR up to 2030.
  • By hotspot, Chennai led with 14.50% of the India data center market size in 2024; Bengaluru is poised for the quickest expansion at a 16.50% CAGR over the forecast period.

Segment Analysis

By Data Center Size: Shift From Hubs to Distributed Nodes

Large facilities represented 22.43% of 2024 revenue, cementing their role as anchor hubs for hyperscale tenants. Shared infrastructure and 50-200 MW scale deliver operating leverage and cross-connect depth. Medium sites, however, will clock a 19.50% CAGR, propelled by edge-node rollouts in tier-2 cities that lower OTT latency and support IoT applications. This distributed mesh allows providers to place compute closer to end users, complementing megacampuses rather than replacing them. As AI models mature, demand is bifurcating between a few giga-watt campuses and numerous mid-sized outposts.

Operators are calibrating expansion plans to balance land costs, grid access, and latency targets. Large-campus developers favor coastal or power-rich inland corridors where multiple subsea cables or renewable clusters offer long-term resilience. Medium-site builders seek brownfield buildings with robust fiber backbones that can be brought online within 12-18 months, a timeline crucial for OTT and gaming platforms racing to meet user-experience thresholds. Sustainability mandates also influence sizing decisions because water-efficient cooling and on-site solar form factors scale more predictably in 20-50 MW blocks. These variables reinforce a two-tier build strategy that anchors the India data center market size at hub locations while radiating smaller nodes into consumption zones.

India Data Center Market: Market Share by Data Center Size

Note: Segment shares of all individual segments available upon report purchase

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By Tier Type: Premium Uptime Gains Momentum

Tier 3 remains the baseline, retaining a 49.61% 2024 share thanks to N+1 redundancy, which balances capex and achieves 99.982% availability. Yet Tier 4 is accelerating at 20.55% CAGR as BFSI, healthcare, and real-time trading platforms demand 99.995% uptime. Operators that can deliver concurrently maintainable, fault-tolerant layouts with 2N power trains are capturing high-value workloads. Tier 1 and Tier 2 rooms persist for development and testing, as well as cost-sensitive use cases, but face gradual erosion as criticality increases.

Regulators and insurers are increasingly aligning service-level agreements with Tier 4 benchmarks, nudging enterprises to migrate their mission-critical stacks upward. Capital costs are mitigated by modular designs that allow operators to phase in investment while achieving Tier 4 credentials from day one. In parallel, hybrid-cloud architects push for standardized Tier 3 footprints at secondary sites to simplify disaster-recovery blueprints without incurring the full expense of a Tier 4 footprint. The net result is a stratified uptime landscape where premium fault tolerance coexists with pragmatic redundancy tiers, collectively broadening the India data center market share for operators that offer clear service-level differentiation.

By Data Center Type: Colocation Dominance Meets Hyperscale Surge

Colocation contributed 85.16% of 2024 revenue because SMEs and large enterprises alike favor opex-oriented, carrier-neutral footprints. However, hyperscale or self-built campuses will lead the way at a 21.50% CAGR. Examples include STT GDC’s USD 3.2 billion plan for a 550 MW expansion and AdaniConneX’s USD 1.44 billion financing for a 1 GW renewable-focused platform. Hyperscalers prize design control, direct renewable tie-ins, and dense fiber paths that shared halls cannot wholly emulate.

Capex providers view colocation as a stable, annuity-like asset class, drawing pension funds and sovereign wealth investors who prefer 10- to 15-year contracted cash flows. Conversely, hyperscale builds attract private-equity and strategic ventures seeking higher total-return profiles tied to AI-driven megawatt ramps. Carrier hotels in metro cores remain critical interconnection gateways, yet edge-native colocation suites in tier-2 cities unlock incremental demand from CDNs, fintech start-ups, and SaaS vendors. Over time, the dual-track model ensures resilient occupancy across economic cycles, while magnifying competitive pressure on operators to demonstrate clear value propositions within the broader Indian data center market.

India Data Center Market: Market Share by Data Center Type

Note: Segment shares of all individual segments available upon report purchase

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By End User: BFSI Outpaces Long-Dominant IT and Telecom

IT and telecom accounted for 46.50% share in 2024 due to early cloud migration and continual network upgrades. BFSI, turbo-charged by localization mandates and digital banking, is forecast to expand at 18.20% CAGR. Real-time payments, fraud analytics, and regulator-mandated disaster recovery sites are driving demand. E-commerce, manufacturing, and media verticals introduce diversified workload stacks, ranging from AR-enabled shopping to Industry 4.0 sensor analytics, which enhance the India data center market’s resilience to shocks from a single sector.

Banks and payment players pre-reserve multi-year rack blocks to ensure compliance certainty, thereby underwriting predictable revenues for facility owners. Telecom operators expand edge caches to reduce backhaul, while IT services giants demand flexible pods that support burst capacity during project sprints. Manufacturing firms rely on AI-led quality-control analytics that prioritize near-plant data processing, whereas media studios utilize high-density render farms for OTT content pipelines. This mosaic of vertical requirements underlines why the India data center market size benefits from both regulated-sector stickiness and innovation-led expansion across consumer-centric industries.

Geography Analysis

Chennai claimed 14.50% 2024 share on the strength of multiple cable landings, automotive manufacturing digitization, and supportive state policy. Carrier-dense campuses along Old Mahabalipuram Road connect directly to 2Africa Pearls and IEX systems, offering low-latency routes to Singapore and Marseille. Mumbai remains indispensable for international finance, but it wrestles with real estate scarcity and the single-point-of-failure debate. Bengaluru, the software capital, is slated for a 16.50% CAGR as hyperscalers co-locate near developer talent pools. Delhi-NCR benefits from public-sector digitization, while Hyderabad leverages progressive incentives and pharma-tech convergence. Emerging tier-2 clusters-Pune, Jaipur, Kochi, and Bhubaneswar- now host edge nodes that bridge last-mile latency for OTT and IoT. The IndiaAI Mission’s plan for 27 regional labs in Gorakhpur, Shimla, and Patna underscores policy-driven capacity diffusion.[2]Ministry of Electronics and IT, “Government of India taking measures to protect critical infrastructure,” pib.gov.in

Competitive Landscape

Aggregate announced investments exceed USD 20 billion, signaling vigorous build-out cycles. Market leaders such as Reliance Jio, STT GDC, and AdaniConneX are scaling 300-700 MW each, while incumbents NTT, Equinix, and Nxtra blend brownfield expansions with renewable PPAs. Strategic focus areas include high-density liquid cooling, captive solar-wind hybrids, and direct links to new submarine systems. Edge specialists, such as Sify, pivot to 5-20 MW regional halls, carving out niches in tier-2 metros. Hyperscale self-builds intensify competition for land and grid capacity but also enlarge the overall demand pool, cushioning colocation absorption rates. Sustainability commitments, illustrated by Nxtra’s RE100 pledge and Equinix’s CleanMax PPA, are becoming competitive differentiators, particularly for multinational tenants with Scope 2 reduction goals. [3]Airtel Press Release, “Nxtra by Airtel joins RE100,” airtel.in

India Data Center Industry Leaders

  1. Equinix Inc.

  2. NTT Ltd

  3. Nxtra Data Ltd

  4. Sify Technologies Ltd

  5. STT GDC Pte Ltd

  6. *Disclaimer: Major Players sorted in no particular order
India Data Center Market
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Recent Industry Developments

  • January 2025: Reliance Industries confirmed a USD 30 billion, 3 GW AI campus in Jamnagar, Gujarat.
  • January 2025: Google switched on the 218 Tbps Blue-Raman cable in Mumbai, widening international bandwidth.
  • January 2025: NTT inaugurated a new campus in Noida, adding northern-India capacity.
  • November 2024: Equinix signed a renewable-energy PPA with CleanMax for its Mumbai facilities.

Free With This Report

We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.

India Data Center Market
India Data Center Market
India Data Center Market
India Data Center Market

Table of Contents for India Data Center Industry Report

1. INTRODUCTION

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Explosive growth in hyperscale cloud deployments post-Digital India incentives
    • 4.2.2 Escalating domestic OTT video traffic driving edge node demand
    • 4.2.3 Mandated data localisation under RBI and MeitY policies
    • 4.2.4 Availability-linked power-purchase agreements for captive solar-wind hybrid energy
    • 4.2.5 Submarine cable landing expansions boosting international bandwidth supply
    • 4.2.6 Rising AI-ML workload intensity requiring GPU-dense racks
  • 4.3 Market Restraints
    • 4.3.1 Inter-state power tariff differentials eroding cost competitiveness
    • 4.3.2 Land acquisition delays in coastal high-demand hubs
    • 4.3.3 Slow clearances for diesel-based backup generators in urban cores
    • 4.3.4 Shortage of specialised data center construction labour
  • 4.4 Market Outlook
    • 4.4.1 IT Load Capacity
    • 4.4.2 Raised Floor Space
    • 4.4.3 Colocation Revenue
    • 4.4.4 Installed Racks
    • 4.4.5 Rack Space Utilization
    • 4.4.6 Submarine Cable
  • 4.5 Key Industry Trends
    • 4.5.1 Smartphone Users
    • 4.5.2 Data Traffic Per Smartphone
    • 4.5.3 Mobile Data Speed
    • 4.5.4 Broadband Data Speed
    • 4.5.5 Fiber Connectivity Network
    • 4.5.6 Regulatory Framework
  • 4.6 Value Chain and Distribution Channel Analysis
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (MEGAWATT)

  • 5.1 By Data Center Size
    • 5.1.1 Large
    • 5.1.2 Massive
    • 5.1.3 Medium
    • 5.1.4 Mega
    • 5.1.5 Small
  • 5.2 By Tier Type
    • 5.2.1 Tier 1 and 2
    • 5.2.2 Tier 3
    • 5.2.3 Tier 4
  • 5.3 By Data Center Type
    • 5.3.1 Hyperscale / Self-built
    • 5.3.2 Enterprise / Edge
    • 5.3.3 Colocation
    • 5.3.3.1 Non-Utilized
    • 5.3.3.2 Utilized
    • 5.3.3.2.1 Retail Colocation
    • 5.3.3.2.2 Wholesale Colocation
  • 5.4 By End User
    • 5.4.1 BFSI
    • 5.4.2 IT and ITES
    • 5.4.3 E-Commerce
    • 5.4.4 Government
    • 5.4.5 Manufacturing
    • 5.4.6 Media and Entertainment
    • 5.4.7 Telecom
    • 5.4.8 Other End Users
  • 5.5 By Hotspot
    • 5.5.1 Bengaluru
    • 5.5.2 Chennai
    • 5.5.3 Hyderabad
    • 5.5.4 Mumbai
    • 5.5.5 Delhi-NCR
    • 5.5.6 Rest of India

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 NTT Ltd
    • 6.4.2 CtrlS Datacenters Ltd
    • 6.4.3 AdaniConneX Private Limited
    • 6.4.4 STT Telemedia Global Data Centres India Private Limited
    • 6.4.5 Amazon Web Services Inc
    • 6.4.6 Princeton Digital Group Limited
    • 6.4.7 Sify Technologies Limited
    • 6.4.8 Colt Data Centre Services Holdings Limited
    • 6.4.9 Nxtra Data Limited
    • 6.4.10 SAP SE
    • 6.4.11 Yotta Infrastructure Solutions LLP
    • 6.4.12 RackBank Datacenters Private Limited
    • 6.4.13 MilesWeb Internet Services Pvt Ltd
    • 6.4.14 Pi DATACENTERS Pvt Ltd
    • 6.4.15 Reliance Communications Limited
    • 6.4.16 Equinix Inc
    • 6.4.17 Digital Realty Trust Inc
    • 6.4.18 Web Werks India Pvt Ltd
    • 6.4.19 Tata Communications Limited
    • 6.4.20 Bridge Data Centres India Private Limited

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and unmet-need assessment
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List of Tables & Figures

  1. Figure 1:  
  2. VOLUME OF IT LOAD CAPACITY, MW, INDIA, 2018 - 2030
  1. Figure 2:  
  2. VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), INDIA, 2018 - 2030
  1. Figure 3:  
  2. VALUE OF COLOCATION REVENUE, USD MILLION, INDIA, 2018 - 2030
  1. Figure 4:  
  2. VOLUME OF INSTALLED RACKS, NUMBER, INDIA, 2018 - 2030
  1. Figure 5:  
  2. RACK SPACE UTILIZATION, %, INDIA, 2018 - 2030
  1. Figure 6:  
  2. COUNT OF SMARTPHONE USERS, IN MILLION, INDIA, 2018 - 2030
  1. Figure 7:  
  2. DATA TRAFFIC PER SMARTPHONE, GB, INDIA, 2018 - 2030
  1. Figure 8:  
  2. AVERAGE MOBILE DATA SPEED, MBPS, INDIA, 2018 - 2030
  1. Figure 9:  
  2. AVERAGE BROADBAND SPEED, MBPS, INDIA, 2018 - 2030
  1. Figure 10:  
  2. LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, INDIA, 2018 - 2030
  1. Figure 11:  
  2. VOLUME OF IT LOAD CAPACITY, MW, INDIA, 2018 - 2030
  1. Figure 12:  
  2. VOLUME OF HOTSPOT, MW, INDIA, 2018 - 2030
  1. Figure 13:  
  2. VOLUME SHARE OF HOTSPOT, %, INDIA, 2018 - 2030
  1. Figure 14:  
  2. VOLUME SIZE OF BANGALORE, MW, INDIA, 2018 - 2030
  1. Figure 15:  
  2. VOLUME SHARE OF BANGALORE, MW, HOTSPOT, %, INDIA, 2018 - 2030
  1. Figure 16:  
  2. VOLUME SIZE OF CHENNAI, MW, INDIA, 2018 - 2030
  1. Figure 17:  
  2. VOLUME SHARE OF CHENNAI, MW, HOTSPOT, %, INDIA, 2018 - 2030
  1. Figure 18:  
  2. VOLUME SIZE OF HYDERABAD, MW, INDIA, 2018 - 2030
  1. Figure 19:  
  2. VOLUME SHARE OF HYDERABAD, MW, HOTSPOT, %, INDIA, 2018 - 2030
  1. Figure 20:  
  2. VOLUME SIZE OF MUMBAI, MW, INDIA, 2018 - 2030
  1. Figure 21:  
  2. VOLUME SHARE OF MUMBAI, MW, HOTSPOT, %, INDIA, 2018 - 2030
  1. Figure 22:  
  2. VOLUME SIZE OF NCR, MW, INDIA, 2018 - 2030
  1. Figure 23:  
  2. VOLUME SHARE OF NCR, MW, HOTSPOT, %, INDIA, 2018 - 2030
  1. Figure 24:  
  2. VOLUME SIZE OF PUNE, MW, INDIA, 2018 - 2030
  1. Figure 25:  
  2. VOLUME SHARE OF PUNE, MW, HOTSPOT, %, INDIA, 2018 - 2030
  1. Figure 26:  
  2. VOLUME SIZE OF REST OF INDIA, MW, INDIA, 2018 - 2030
  1. Figure 27:  
  2. VOLUME SHARE OF REST OF INDIA, MW, HOTSPOT, %, INDIA, 2018 - 2030
  1. Figure 28:  
  2. VOLUME OF DATA CENTER SIZE, MW, INDIA, 2018 - 2030
  1. Figure 29:  
  2. VOLUME SHARE OF DATA CENTER SIZE, %, INDIA, 2018 - 2030
  1. Figure 30:  
  2. VOLUME SIZE OF LARGE, MW, INDIA, 2018 - 2030
  1. Figure 31:  
  2. VOLUME SIZE OF MASSIVE, MW, INDIA, 2018 - 2030
  1. Figure 32:  
  2. VOLUME SIZE OF MEDIUM, MW, INDIA, 2018 - 2030
  1. Figure 33:  
  2. VOLUME SIZE OF MEGA, MW, INDIA, 2018 - 2030
  1. Figure 34:  
  2. VOLUME SIZE OF SMALL, MW, INDIA, 2018 - 2030
  1. Figure 35:  
  2. VOLUME OF TIER TYPE, MW, INDIA, 2018 - 2030
  1. Figure 36:  
  2. VOLUME SHARE OF TIER TYPE, %, INDIA, 2018 - 2030
  1. Figure 37:  
  2. VOLUME SIZE OF TIER 1 AND 2, MW, INDIA, 2018 - 2030
  1. Figure 38:  
  2. VOLUME SIZE OF TIER 3, MW, INDIA, 2018 - 2030
  1. Figure 39:  
  2. VOLUME SIZE OF TIER 4, MW, INDIA, 2018 - 2030
  1. Figure 40:  
  2. VOLUME OF ABSORPTION, MW, INDIA, 2018 - 2030
  1. Figure 41:  
  2. VOLUME SHARE OF ABSORPTION, %, INDIA, 2018 - 2030
  1. Figure 42:  
  2. VOLUME SIZE OF NON-UTILIZED, MW, INDIA, 2018 - 2030
  1. Figure 43:  
  2. VOLUME OF COLOCATION TYPE, MW, INDIA, 2018 - 2030
  1. Figure 44:  
  2. VOLUME SHARE OF COLOCATION TYPE, %, INDIA, 2018 - 2030
  1. Figure 45:  
  2. VOLUME SIZE OF HYPERSCALE, MW, INDIA, 2018 - 2030
  1. Figure 46:  
  2. VOLUME SIZE OF RETAIL, MW, INDIA, 2018 - 2030
  1. Figure 47:  
  2. VOLUME SIZE OF WHOLESALE, MW, INDIA, 2018 - 2030
  1. Figure 48:  
  2. VOLUME OF END USER, MW, INDIA, 2018 - 2030
  1. Figure 49:  
  2. VOLUME SHARE OF END USER, %, INDIA, 2018 - 2030
  1. Figure 50:  
  2. VOLUME SIZE OF BFSI, MW, INDIA, 2018 - 2030
  1. Figure 51:  
  2. VOLUME SIZE OF CLOUD, MW, INDIA, 2018 - 2030
  1. Figure 52:  
  2. VOLUME SIZE OF E-COMMERCE, MW, INDIA, 2018 - 2030
  1. Figure 53:  
  2. VOLUME SIZE OF GOVERNMENT, MW, INDIA, 2018 - 2030
  1. Figure 54:  
  2. VOLUME SIZE OF MANUFACTURING, MW, INDIA, 2018 - 2030
  1. Figure 55:  
  2. VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, INDIA, 2018 - 2030
  1. Figure 56:  
  2. VOLUME SIZE OF TELECOM, MW, INDIA, 2018 - 2030
  1. Figure 57:  
  2. VOLUME SIZE OF OTHER END USER, MW, INDIA, 2018 - 2030
  1. Figure 58:  
  2. VOLUME SHARE OF MAJOR PLAYERS, %, INDIA

India Data Center Market Report Scope

Bangalore, Chennai, Hyderabad, Mumbai, NCR, Pune are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
By Data Center Size
Large
Massive
Medium
Mega
Small
By Tier Type
Tier 1 and 2
Tier 3
Tier 4
By Data Center Type
Hyperscale / Self-built
Enterprise / Edge
Colocation Non-Utilized
Utilized Retail Colocation
Wholesale Colocation
By End User
BFSI
IT and ITES
E-Commerce
Government
Manufacturing
Media and Entertainment
Telecom
Other End Users
By Hotspot
Bengaluru
Chennai
Hyderabad
Mumbai
Delhi-NCR
Rest of India
By Data Center Size Large
Massive
Medium
Mega
Small
By Tier Type Tier 1 and 2
Tier 3
Tier 4
By Data Center Type Hyperscale / Self-built
Enterprise / Edge
Colocation Non-Utilized
Utilized Retail Colocation
Wholesale Colocation
By End User BFSI
IT and ITES
E-Commerce
Government
Manufacturing
Media and Entertainment
Telecom
Other End Users
By Hotspot Bengaluru
Chennai
Hyderabad
Mumbai
Delhi-NCR
Rest of India
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Market Definition

  • IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
  • ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
  • RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
  • DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
  • TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
  • COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
  • END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword Definition
Rack Unit Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches.
Rack Density It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning.
IT Load Capacity The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW).
Absorption Rate It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity.
Raised Floor Space It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter.
Computer Room Air Conditioner (CRAC) It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center.
Aisle It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle.
Cold Aisle It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature.
Hot Aisle It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC.
Critical Load It includes the servers and other computer equipment whose uptime is critical for data center operation.
Power Usage Effectiveness (PUE) It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient.
Redundancy It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected.
Uninterruptible Power Supply (UPS) It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only.
Generators Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption.
N It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure.
N+1 Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required.
2N It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center.
In-Row Cooling It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature.
Tier 1 Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours.
Tier 2 A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours.
Tier 3 A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours.
Tier 4 It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes.
Small Data Center Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center.
Medium Data Center Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center.
Large Data Center Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center.
Massive Data Center Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center.
Mega Data Center Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center.
Retail Colocation It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs).
Wholesale Colocation It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises.
Hyperscale Colocation It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+).
Mobile Data Speed It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest.
Fiber Connectivity Network It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km).
Data Traffic per Smartphone It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB).
Broadband Data Speed It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable.
Submarine Cable A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another.
Carbon Footprint It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities.
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Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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