Where the cloud lands: India's data race heats up

Fuelled by cloud, Al, 5G, and sustainability, India's data centres are evolving into high-performance hubs—quietly powering the nation's tech future.

- BY PUNAM SINGH

There is something fascinating about the invisible force that quietly governs this world—the things that you barely notice but cannot imagine living without. Yes, it is data. In today's age, the invisible force is the data centre market, the silent backbone powering our hyper- connected lives.

Over the past decade, data centres in India have evolved from mere infrastructure projects into critical enablers of industries like e-commerce, healthcare, and financial services. This transformation has been driven by the rise of internet users, the adoption of cloud technologies, and the growing influence of artificial intelligence (AI).

According to recent industry insights by Horizon, the Indian data centre market generated a revenue of USD 5,377.7 million in 2023 and is projected to reach USD 14,615.4 million by 2030, growing at an impressive CAGR of 15.4% from 2024 to 2030.

Another analysis by Arizton estimates that the Indian data centre market will attract investments totalling USD 9.96 billion by 2028, with a CAGR of 10.69% between 2022 and 2028. Additionally, MarkNtel Advisors projects that the market, valued at approximately USD 5.7 billion in 2024, will grow to USD 12 billion by 2030.

These varying projections highlight the dynamic nature of the Indian data centre market, with growth rates ranging from approximately 10.7% to 15.4% over the forecast period. This growth signals both immense opportunity and the challenges that lie ahead.