{"id":786176,"date":"2026-01-22T14:28:02","date_gmt":"2026-01-22T14:28:02","guid":{"rendered":"https:\/\/www.abnewswire.com\/pressreleases\/?p=786176"},"modified":"2026-01-22T14:28:02","modified_gmt":"2026-01-22T14:28:02","slug":"india-data-center-market-size-to-reach-usd-2103-bn-by-2031-growth-concentrated-in-mumbai-noida-chennai-and-bengaluru-arizton","status":"publish","type":"post","link":"https:\/\/www.abnewswire.com\/pressreleases\/india-data-center-market-size-to-reach-usd-2103-bn-by-2031-growth-concentrated-in-mumbai-noida-chennai-and-bengaluru-arizton_786176.html","title":{"rendered":"India Data Center Market Size to Reach USD 21.03 Bn by 2031, Growth Concentrated in Mumbai, Noida, Chennai, and Bengaluru | Arizton"},"content":{"rendered":"
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\"India<\/a><\/div>\n
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India Data Center Market Report by Arizton<\/div>\n<\/div>\n<\/div>\n
insights on 213 Data Centers Facilities across India<\/div>\n

According to Arizton recent study, the India’s data center market<\/a> is transitioning from early-stage capacity build-out to a scale-driven, hyperscale-led expansion phase, positioning the country as a core digital infrastructure hub in Asia-Pacific. Demand is no longer driven solely by connectivity growth, but by AI workloads, cloud region localization, data sovereignty requirements, and enterprise digital transformation. Government-backed digital policies, accelerating submarine and inland fiber deployments, and improving power and land availability are enabling operators to plan long-duration, multi-campus developments rather than isolated facilities. Thus, the India data center market, valued at USD 9.79 billion in 2025, is expected to reach USD 21.03 billion by 2031, growing at a CAGR of 13.59%, with sustained investments across hyperscale, colocation, and AI-ready infrastructure.<\/p>\n

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Key insights into this evolving market:<\/strong> https:\/\/www.arizton.com\/market-reports\/data-center-market-in-india-2026<\/a><\/p>\n

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Report Summary:<\/strong><\/p>\n

MARKET SIZE (INVESTMENT): <\/strong>USD 21.03 Billion (2031)<\/p>\n

MARKET SIZE (AREA): <\/strong>2.27 Million Sq. feet (2031)<\/p>\n

MARKET SIZE (POWER CAPACITY): <\/strong>597 MW (2031)<\/p>\n

CAGR – INVESTMENT (2025-2031): <\/strong>13.59%<\/p>\n

COLOCATION MARKET SIZE (REVENUE): <\/strong>USD 6.14 Billion (2031)<\/p>\n

HISTORIC YEAR: <\/strong>2022-2024<\/p>\n

BASE YEAR: <\/strong>2025<\/p>\n

FORECAST YEAR: <\/strong>2026-2031<\/p>\n

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India’s AI Push Is Reshaping Digital Infrastructure Demand<\/strong><\/p>\n

India’s accelerating adoption of artificial intelligence and digitalization is being driven by rapid technological progress, evolving consumer behavior, and a growing need for operational efficiency across industries. Since the launch of the National Strategy for AI in 2018, the country has laid a clear foundation for AI integration across healthcare, agriculture, education, climate action, space, and enterprise operations, triggering widespread digital transformation. This momentum, combined with rising data volumes from BFSI, e-commerce, healthcare, media, and government services, has intensified demand for secure data processing and storage. Regulatory clarity through the Digital Personal Data Protection framework is further strengthening confidence in data governance. As a result, demand for AI-ready data centers is intensifying across major metros and emerging hubs such as Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Visakhapatnam, positioning India as a high-growth market for next-generation data center investments.<\/p>\n

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India’s Low-Carbon Transition Is Shaping Long-Term Infrastructure Capital Flows <\/strong><\/p>\n

India’s push toward a sustainable, low-carbon economy is increasingly shaping infrastructure investment decisions. With a national commitment to achieve net-zero emissions by 2070 and a 2030 target of 500 GW of installed renewable capacity, led by solar and wind, the policy direction is clear. Data center operators are actively aligning with this transition by securing renewable power through long-term PPAs to support energy-intensive digital infrastructure. For instance, CtrlS Datacenters completed its GreenVolt 1 solar project in Nagpur in February 2025, delivering over 130 MW across two phases. The project is expected to meet nearly 60% of the company’s Mumbai campus power needs, highlighting how sustainability, renewable integration, and energy security are becoming core to India’s next phase of data center growth.<\/p>\n

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Liquid Cooling Emerges as a Core Enabler of India’s AI-Ready Data Centers<\/strong><\/p>\n

India’s rising adoption of AI, machine learning, big data, and IoT is fundamentally changing data center design requirements, as high-performance computing workloads generate significantly higher heat densities. To support increasing rack power and AI-intensive applications, operators are gradually shifting from conventional air-cooling to advanced liquid-cooling systems, which offer superior thermal efficiency and scalability for high-density environments. This transition is gaining momentum as digital usage, cloud adoption, and AI deployment accelerate nationwide. Reflecting this shift, Johnson Controls introduced its Silent-Aire Coolant Distribution platform in late 2025, designed to support scalable liquid-cooling capacity for data centers in India. As IT loads continue to rise, liquid-based cooling is expected to play a central role in enabling energy-efficient, AI-ready data center infrastructure over the forecast period.<\/p>\n

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Indian cities have the largest data center hubs<\/strong><\/p>\n

India’s largest data center hubs are concentrated in a few high-growth urban markets with strong digital infrastructure. Maharashtra leads the landscape, with Mumbai, Navi Mumbai, and Pune forming the country’s most mature data center cluster, supported by dense fiber connectivity, international network access, and supportive government policies. Uttar Pradesh, led by Noida, is emerging as a preferred destination due to its industrial base, proximity to Delhi NCR, and rising hyperscale demand. In southern India, Chennai, Tamil Nadu, stands out as a key data center market, driven by extensive submarine cable connectivity, global latency advantages, and a skilled workforce. Bengaluru, Karnataka, continues to attract strong investments from major operators such as Sify Technologies, Nxtra by Airtel, CapitaLand, NTT DATA, and Larsen & Toubro, reinforcing India’s position as a rapidly scaling data center market in Asia.<\/p>\n

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View the detailed analysis behind these trends: <\/strong>https:\/\/www.arizton.com\/market-reports\/data-center-market-in-india-2026<\/a><\/p>\n

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Top listed data center companies in India<\/strong><\/p>\n

IT Infrastructure Providers<\/strong><\/p>\n