Demand for data centres is steadily increasing in India
The India Data Centre Market is projected to reach US$21.03 billion by 2031, rising at a CAGR of 13.59% from a value of US$9.79 billion in 2025, according to a ResearchAndMarkets.com reports on the industry.
Mumbai, Navi Mumbai, Hyderabad, Chennai, Pune, are the preferred locations in India, with major investments from colocation service providers such as ST Telemedia Global Data Centres, NTT DATA, CtrlS, Equinix, Sify Technologies, Nxtra by Airtel, among others, said the report “India Data Center Market – Investment Analysis & Growth Opportunities 2026-2031” report which has been added to ResearchAndMarkets.com’s offering since 20 Jan.
Data centre operators in India are showing interest in adopting renewable and they signed a renewable energy PPA for their data centre facility. For instance, in November 2025, CtrlS Datacentres announced that it had signed an MoU with NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, to develop a renewable energy project with a capacity of around 2GW.
In India, the demand for data centres is steadily increasing. This growth is likely to raise the demand for both power and water, the two major components of data centre operations. “We believe that in the coming years, power challenges are likely to be reduced due to government initiatives and data centre operators adopting renewable energy and in-house grid systems,” said the report.
“However, we have noticed, there is likely to be one more challenge in the future, i.e, water challenges in the Indian data centre market. Most of the data centres are expected to adopt a liquid cooling system, which uses less water than a traditional cooling system,” it added.
In August 2025, CtrlS Datacentres announced that it had launched its first phase of the Kolkata data centre campus, which uses a liquid cooling system in its facility to manage its heat.
The India data centre market has the presence of several major data centre operators, including AdaniConneX, Colt Data Centre Services, CtrlS, Equinix, Digital Connexion (BAM Digital Reality), NTT DATA, Nxtra by Airtel, ST Telemedia Global Data Centres (STT GDC), and others. Some data center operators have expanded their facilities across the country, with new developments expected to become operational during the forecast period.
The country has the presence of some of the major cloud operators, such as AWS, Google, IBM Cloud, Microsoft, Oracle, OVH, and Tencent Cloud, with dedicated cloud region(s). Their cloud regions are spread across various cities such as Chennai, Delhi NCR, Hyderabad, and Pune.
The India data centre market has the presence of several major IT infrastructure vendor, including Arista Networks, Broadcom, Cisco Systems, Dell Technologies, IBM, Lenovo, NVIDIA, among others. Fiinews.com
