Apr 13, 2023 | Posted by Abdul-Rahman Oladimeji
India's data center construction market is expected to grow at a CAGR of 14.76% from 2022-2028, according to a report by Arizton. Adopting advanced technological solutions such as IoT, big data, and AI drives demand cloud services across various industries. Major cloud service providers in India will create opportunities for data center operators to develop more facilities during the forecast period. Cloud computing is transforming the banking industry, with around 80% of corporate banks in India expected to operate their trade finance and treasury workloads on cloud technology by 2024. The deployment of 5G technology will increase edge data center investments, while the availability of renewable energy and liquid cooling will support AI and ML workloads.
Several Indian and foreign companies are investing in data centers in India, including Adani Group, Hiranandani Group, Microsoft, Amazon, and the Mantra Group. Yotta Infrastructure, NTT Global Data Centers, and ST Telemedia Global Data Centres India have expanded their presence there. In recent years, state and central governments in India have invested in constructing and expanding State Data Centers (SDCs). Maharashtra led the data center market in India, followed by Tamil Nadu, Telangana, and other states. The State Government of Maharashtra has developed a new Renewable Energy Policy, which aims to implement 17.36 GW of transmission system-connected power projects by 2025. The Madhya Pradesh government announced that it had set a target to achieve a green energy generation capacity of around 20 GW by 2030, while the Uttar Pradesh government has released a draft of Solar Energy Policy 2022 and planning to establish 20 solar cities over the next five years.
The rising demand for on-demand video, mobile gaming, and online content is expected to drive data center procurement in India, particularly in states such as Maharashtra, Tamil Nadu, Telangana, and Uttar Pradesh, which are witnessing growth in artificial intelligence, IoT, virtual reality, online payment systems, and intelligent solutions. The country's potential for growth in the data center construction market makes it a preferred need for data center providers.
