Mumbai Data Center Market Size

Mumbai Data Center Market Analysis

The Mumbai Data Center market was valued at 411.9 MW, and it is expected to witness a CAGR of 13.44% during the forecast period to become 1,491.38 MW. 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.

• Mumbai is the most preferred destination for cloud players, with a 60% share of the occupied space due to its excellent infrastructure support. The city's strong demand is led by BFSI, media, and IT/ITes enterprises, resulting in high occupancy levels of 95%, for which the state has granted various incentives for establishing integrated data center parks.
• The growing adoption of cloud and digital services across various end-user industries further expands the B2B cloud computing service market's scope. Hence, for managed data center and colocation service market, Big data and IoT technology will expand investments in the data center market. Mumbai continues to attract the majority of data center investments as the city benefits from the availability of reliable power, cable handling stations, BFSI demand, a telecom hub, and the absence of any major natural threats.
• The need for cloud-based solutions has grown nationwide due to rising technological adoption and consumer preference for the cloud, allowing access to data from remote locations. As more businesses understand the value of saving money and resources by moving their data to the cloud rather than building and maintaining on-premise infrastructure, the demand for cloud-based solutions and, consequently, the adoption of cloud-based data centers nationwide has increased.
• Many data center companies need help entering the Mumbai market due to the high cost of data center establishment. Data centers that follow standard building codes for commercial buildings waste space and incur higher charges. In addition, factors including high real estate costs, spending on enhancing comprehensive area network connectivity, and rising equipment costs have added to the sector's already high CapEx.
• Additionally, the COVID-19 pandemic substantially impacted the nation, affecting the local data center service providers. Further, many organizations converted to working from home due to the country's widespread travel prohibition, which significantly boosted data traffic and put a lot of strain on the data center's ability to prevent downtime.