Pune: India’s data center (DC) industry has witnessed a massive influx of over $6.5 billion in investments via private equity, joint ventures, and acquisitions over the past decade, according to the latest ANAROCK Capital report titled India Data Centre Market: Growth, Trends & Outlook.
The industry has undergone remarkable expansion, with its estimated market value now reaching $10 billion. Revenue generation for FY 2024 alone stands at $1.2 billion, highlighting the sector’s rapid growth.
Capacity Growth & Market Expansion
Between 2019 and 2024, India’s data center capacity skyrocketed by 139%, increasing from 590 MW to 1.4 GW. This surge is fueled by rising internet penetration, which has grown from 33.4% in 2019 to 55.2% in 2024, alongside a sharp rise in data consumption per user, nearly doubling from 11.5 GB to 21.1 GB per month.
"India now leads globally in mobile data consumption per smartphone," said Devi Shankar, Executive Director – Industrial, Logistics & Data Centres, ANAROCK Capital. "This digital boom is a major driver of demand for high-grade data center infrastructure across the country."
Market Leaders: Mumbai & Chennai
Mumbai and Chennai dominate the Indian DC industry, accounting for 70% of the country’s total IT power capacity. Mumbai alone contributes 49%, maintaining its position as the top DC hub.
From 2022 to 2024, supply growth in these cities has set new records, with a 92% increase in Mumbai and an astonishing 340% surge in Chennai.
Other Key Data Center Markets in India
Apart from Mumbai and Chennai, several other cities have emerged as key DC markets, including:
Noida – 9% of total IT power capacity
Bangalore – 8%
Pune – 5%
Hyderabad – 4%
The overall market occupancy level stands at 76%, reflecting strong demand and high operational efficiency in the sector.
