India Hyperscale Data Center Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 14.84 Billion |
| Market Size (2030) | USD 57.74 Billion |
| Growth Rate (2025 - 2030) | 31.21% CAGR |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
India Hyperscale Data Center Market Analysis by Mordor Intelligence
The India hyperscale data center market stands at USD 14.84 billion in 2025 and is projected to reach USD 57.73 billion by 2030, reflecting a powerful 31.21% CAGR. Four structural forces underpin this momentum: stringent personal-data localization rules, rapid AI workload adoption, new subsea cable routes along both coasts, and deep pools of institutional capital funding multi-gigawatt campuses. Mumbai and Chennai remain anchor hubs, yet tier-2 cities are scaling quickly as operators seek lower land prices and assured power feeds. Rack densities are rising from 6-8 kW in 2024 to 15-30 kW by 2027, accelerating uptake of liquid cooling while renewable-only power purchase agreements (PPAs) become standard. Investments by AdaniConneX, AWS, and NTT show that the India hyperscale data center market is maturing from early build-out toward diversified, sustainability-focused expansion.
Key Report Takeaways
- By data center type, hyperscale colocation led with 68% India hyperscale data center market share in 2024; enterprise self-build campuses are projected to expand at a 31.25% CAGR to 2030.
- By service type, IaaS accounted for 65% of the India hyperscale data center market size in 2024, while PaaS is forecast to advance at a 31.34% CAGR through 2030.
- By end user, Cloud and IT services commanded 52% of the India hyperscale data center market size in 2024; manufacturing workloads are advancing at an 31.45% CAGR to 2030
India Hyperscale Data Center Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Accelerated Cloud-Service Localisation Mandates Driving Hyperscale Expansions | +8.5% | National, with concentration in Mumbai, Chennai, and Hyderabad | Medium term (2-4 years) |
| Surge in AI/ML Workloads Requiring GPU-Dense Racks and High Power Density | +7.2% | Mumbai, Chennai, Delhi NCR | Short term (≤ 2 years) |
| Rapid Fibre Connectivity via New Sub-Sea Cable Landings on West and East Coasts | + 5.8% | Mumbai, Chennai, with spillover to inland cities | Medium term (2-4 years) |
| Favourable Renewable-Energy Policies Enabling 24×7 Green PPAs | +4.9% | Tamil Nadu, Maharashtra, Gujarat, Telangana | Long term (≥ 4 years) |
| Rising Real-Estate Investments by Sovereign and Pension Funds in Digital Infra | +3.7% | Pan-India, with focus on Mumbai, Chennai, Hyderabad | Medium term (2-4 years) |
| State Incentives (Stamp Duty, Power Tariff Rebates) Boosting Data-Center Parks | +3.1% | Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh | Short term (≤ 2 years) |
Source: Mordor Intelligence
Accelerated cloud-service localisation mandates driving hyperscale expansions
India’s Digital Personal Data Protection Act requires sensitive personal data to stay onshore. AWS has earmarked USD 8.3 billion for the Mumbai region to comply, while Reserve Bank pilots for cloud storage point to future public-sector demand. The rule set drives steady pre-leasing in new halls and secures long-term cash flows in the India hyperscale data center market. Enterprises also unlock India-specific AI services that need local training data, reinforcing the cycle of domestic capacity build-out.[2]Reserve Bank of India, “Adoption of Cloud Services for Regulated Entities,” rbi.org.in
Surge in AI/ML workloads requiring GPU-dense racks
Large language models and fraud-detection engines lift rack power from single-digit kilowatts toward 30 kW. Facilities exceeding 25 kW per rack introduce direct-to-chip liquid cooling, a shift that increases build cost yet commands 15-20% pricing premiums. High-density configurations gain traction first inside Mumbai finance blocks, then replicate across the wider India hyperscale data center market as national AI ambitions grow.
Rapid fibre connectivity via new subsea cable landings
Projects such as Meta’s Waterworth add more than 50,000 km of capacity, cutting round-trip latency to Europe and Southeast Asia by up to 40%. Chennai benefits most, doubling operational megawatts between 2024 and 2026. Improved backhaul links spread investment to inland cities connected by low-loss terrestrial fibre, enlarging the effective footprint of the India hyperscale data center market.[3]Meta Platforms, “Meta’s ‘Waterworth’ Cable to Boost India-Europe Connectivity,” about.facebook.com
Favourable renewable-energy policies enabling 24×7 PPAs
State programs in Maharashtra and Tamil Nadu grant tariff rebates and fast-track interconnections for data centers sourcing 100% green power. Operators seal ten-year PPAs that cap energy costs, which account for roughly 25% of operating spend. Sustainability credentials now influence tenant selection, making renewable integration a competitive necessity across the India hyperscale data center market [4]Tamil Nadu Industrial Guidance Bureau, “Tamil Nadu Data Centre Policy—Investor Incentives Overview,” tn.gov.in.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Chronic Grid-Power Deficits in Key Metros Limiting New MW Additions | -2.1% | Mumbai, Chennai, Delhi NCR | Medium term (2-4 years) |
| Long Environmental-Clearance Cycles for Large-Footprint Facilities | -1.8% | Pan-India, with particular impact in coastal areas | Short term (≤ 2 years) |
| Import Dependence for High-Density Liquid-Cooling Hardware | -1.2% | National | Medium term (2-4 years) |
| Rising Land Costs in Mumbai and Chennai Inflating Build-Out CAPEX | -0.9% | Mumbai, Chennai | Long term (≥ 4 years) |
Source: Mordor Intelligence
Chronic grid-power deficits limiting new MW additions
Mumbai faces a 400 MW shortfall between requested and available capacity, forcing phased energization and on-site substations that raise project capex. AI halls needing 2–3× the power of legacy racks intensify the squeeze, nudging operators toward Pune and Indore where spare grid headroom remains. Power risk therefore moderates growth in the India hyperscale data center market until utility upgrades catch up.
Long environmental-clearance cycles for large-footprint facilities
Projects above 50 MW wait eight to twelve months for approvals, with coastal regulation zone checks adding complexity in Chennai and Visakhapatnam. To shorten lead times, developers split campuses into smaller phases, yet phased builds lift per-MW cost by nearly 10%. Companies holding pre-approved land banks thus enjoy a speed-to-market edge in the India hyperscale data center market.[1]Ministry of Electronics and Information Technology, “Digital Personal Data Protection Act Highlights,” meity.gov.in
Segment Analysis
By Data Center Type: Colocation efficiency versus self-build control
The India hyperscale data center market size for colocation reached USD 9.55 billion in 2025, equal to 68% of all revenue. Shared power infrastructure and expert operations appeal to cloud entrants that prefer capital-light deployment. Providers retrofit halls for 15–30 kW racks, integrate liquid cooling manifolds, and deliver 2N power architecture, attracting AI training projects.
Self-build footprints, at 36% of capacity, rise faster where banks and government agencies require dedicated enclaves for regulated data. AWS and Reliance Jio favour bespoke fibre topologies and captive substations that remove single points of failure. Self-build capacity is expanding at 31.25% annually, outpacing overall supply growth inside the India hyperscale data center market.
Note: Segment shares of all individual segments available upon report purchase
By Service Type: IaaS backbone with accelerating PaaS adoption
IaaS generated 65% of 2024 revenue and remains the baseline layer for enterprise migration. GPU instance pricing is six times that of standard vCPU, yet high utilization drives revenue density higher across the India hyperscale data center market. PaaS, advancing at 31.34% CAGR, simplifies application rollout and embeds India-specific compliance modules such as Aadhaar authentication libraries.
Multi-service strategies take hold as SaaS vendors host applications on localized IaaS zones while using managed PaaS databases for low-latency queries. This interdependence reinforces vendor stickiness and elevates the strategic value of integrated stacks within the India hyperscale data center market.
By End User: Cloud and IT hold lead, manufacturing surges
Cloud and IT services accounted for 52% of 2024 revenue, a reflection of multiple availability zones launching across metros. Large SaaS firms cluster workloads near stock exchanges to meet micro-second latency targets, cementing their presence in the India hyperscale data center market.
Manufacturing workloads, growing at 31.45% CAGR, leverage digital twins and predictive maintenance hosted on edge nodes tethered to regional hyperscale cores. BFSI remains pivotal, migrating core banking to MeitY-certified regions while adopting sovereign AI co-processors. Sector-specific needs drive customization and fuel the wider India hyperscale data center industry’s maturity.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Mumbai anchors 45% of installed megawatts and continues to attract multi-story builds despite land prices above USD 1,200 per square metre. Twenty-nine projects were under construction in 2024, often in Navi Mumbai where planners reserve power corridors for data center parks. Financial-services latency requirements keep workloads near local exchanges, reinforcing Mumbai’s primacy in the India hyperscale data center market. Yet a 12-18 month wait for grid connections tempers immediate expansion.
Chennai follows with 25% share and 108 MW live capacity in mid-2024, set to double by 2026 on the back of new cable landings. The Tamil Nadu policy bundles capital subsidies and renewable power quotas, making the city the lowest-cost global location for 15 MW-plus halls. Early adoption of direct-to-chip cooling positions Chennai as an AI-ready enclave inside the India hyperscale data center market.
Hyderabad, Pune, and Kolkata together hold 32% share and capture 45% of new capacity. CtrlS is building a 600 MW campus in Hyderabad, while NTT’s Kolkata launch signals Eastern India’s arrival on the infrastructure map. Improved terrestrial fibre links let these cities deliver 15 ms round-trip latency to metros, extending edge processing closer to users. Smaller nodes in Jaipur, Indore, and Lucknow form a hierarchical mesh that blends hyperscale efficiency with local responsiveness, broadening geographic resilience of the India hyperscale data center market.
Note: Segment shares of all individual segments available upon report purchase
Competitive Landscape
The five largest operators control roughly 65% of live power, giving the India hyperscale data center market a moderate concentration profile. AWS keeps leadership with 35% share of cloud revenue, but AdaniConneX’s USD 10 billion pledge and Reliance Jio’s AI partnership with NVIDIA narrow the gap. Domestic incumbents exploit land banks and state relations to accelerate permitting, an advantage global peers cannot easily replicate.
Competition now centres on high-density, liquid-cooled blocks and on-site renewable integration. NTT and Neysa plan a 400 MW AI cluster in Hyderabad featuring immersion baths for 100 kW racks. Nxtra uses machine-learning airflow controls that cut cooling energy 28%. Operators also invest in talent pipelines, partnering with the National Skill Development Corporation to certify data center technicians and address the 25,000-personnel gap forecast by 2027.
M and A and joint ventures intensify; Equinix’s USD 15 billion global JV with GIC and CPP Investments provides dry powder for Mumbai expansion. Edge-specialists deploy 5 MW pods in manufacturing belts, complementing hub builds rather than cannibalizing them. Sustainability disclosures aligned with SEBI guidelines become table stakes, reinforcing transparency across the India hyperscale data center market
India Hyperscale Data Center Industry Leaders
-
Amazon Web Services Inc.
-
Microsoft Corporation
-
Google LLC
-
NTT Ltd.
-
ADANI GROUP (AdaniConneX)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- February 2025: In a significant move, Blackstone Group, in collaboration with Panchshil Realty, is poised to establish India's largest hyperscale data centre in Navi Mumbai. With a capacity of 500 MW, the project boasts an investment surpassing INR 20,000 crore (approximately USD 2.33 billion). The expansive facility, covering over three million sq ft across 14 buildings, will harness up to 65 percent green energy. This initiative positions it as the nation's inaugural sustainable data centre of such magnitude. Notably, this venture represents the first foreign direct investment (FDI) following Blackstone's recent investment agreements with Maharashtra at Davos, where the firm inked three deals to bolster its presence in India's property and digital infrastructure domains.
- May 2025: RackBank has started building a new campus in Nava Raipur. The facility will be developed in four phases, starting with 80MW of capacity to run 100,000 GPUs. Once complete, it will offer 160MW of capacity and use RackBank's liquid immersion cooling solutions.
- April 2025: NTT DATA and Neysa announced a 400 MW AI cluster in Hyderabad featuring advanced liquid cooling.
- April 2025: CtrlS Datacenters Ltd. has commenced construction on a data center in Bhopal, India. The company announced an investment of Rs 500 crore (approximately USD 59 million) for the facility, which promises "24/7 operational reliability and high uptime."
India Hyperscale Data Center Market Report Scope
The India Hyperscale Data Center Market is Segmented by Data Center Type (Hyperscale Colocation, Enterprise/Hyperscale Self-Build), by Service Type (IaaS ( Infrastructure-As-A-Service), Paas ( Platform-As-A-Service), Saas( Software-As-A-Service)), by End User (Cloud & IT, Telecom, Media and Entertainment, Government, BFSI, Manufacturing, E-Commerce, Other End Users). The Market Sizes and Forecasts are Provided in Terms of USD for all the Above Segments.
| By Data Center Type | Hyperscale Colocation |
| Enterprise/Hyperscale Self Build | |
| By Service Type | IaaS ( Infrastructure-as-a-Service) |
| PaaS ( Platform-as-a-Service) | |
| SaaS( Software-as-a-Service) | |
| By End User | Cloud and IT |
| Telecom | |
| Media and Entertainment | |
| Government | |
| BFSI | |
| Manufacturing | |
| E-Commerce | |
| Other End User |
| Hyperscale Colocation |
| Enterprise/Hyperscale Self Build |
| IaaS ( Infrastructure-as-a-Service) |
| PaaS ( Platform-as-a-Service) |
| SaaS( Software-as-a-Service) |
| Cloud and IT |
| Telecom |
| Media and Entertainment |
| Government |
| BFSI |
| Manufacturing |
| E-Commerce |
| Other End User |
Key Questions Answered in the Report
What is the current value of the India hyperscale data center market?
It is valued at USD 14.84 billion in 2025 and is forecast to reach USD 57.73 billion by 2030.
Which deployment model dominates the sector?
Hyperscale colocation leads with 68% share, while self-build campuses are expanding at 31.25% CAGR
How is the sector addressing power constraints in Mumbai and Chennai?
Developers secure captive substations, sign 24×7 renewable PPAs, and diversify builds into tier-2 cities with surplus grid capacity.
Why are AI workloads reshaping facility design?
GPU clusters raise rack power to 15–30 kW, prompting adoption of direct-to-chip liquid cooling and high-capacity power distribution.
