Delhi-NCR Data Center Market Size (2024 - 2029)

The Delhi-NCR Data Center Market is experiencing significant growth, driven by a shift towards hybrid IT approaches and increased demand for cloud-based solutions. The pandemic has accelerated the digital transformation, prompting businesses to adopt third-party colocation facilities. The Indian government's substantial financial incentives aim to boost the establishment of data centers, despite challenges such as high land acquisition costs and unclear land titles in the region. These factors collectively influence the market size and dynamics of the data center industry in Delhi-NCR.

Market Size of Delhi-NCR Data Center Industry

Delhi-NCR Data Center Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 28.02 %
Market Concentration Low

Major Players

Delhi-NCR Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Delhi-NCR Data Center Market Analysis

The Delhi-NCR Data Center Market is expected to register a CAGR of 28.02% during the forecast period.

A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.

  • The pandemic triggered a fresh wave of digital revolution across the region. Businesses are increasingly turning to third-party colocation facilities for data center operations, which is complemented by a growing shift toward a hybrid IT approach that combines the capabilities of hosted data centers and multi-cloud configurations.
  • The need for cloud-based solutions has grown nationwide because of increased technology usage and consumer desire for the cloud, which allows access to data from remote locations. As more organizations recognize the value of saving money and resources by transferring data to the cloud rather than constructing and maintaining on-premise infrastructure, the demand for cloud-based solutions and, as a result, the adoption of cloud-based data centers across the country has surged.
  • To encourage the establishment of Data Centres and Services in India, the Indian government has allocated INR 12,000 crores in sops and incentives. In addition to offering real estate help and consulting, the government plans to invest INR 3L crore over the next five years, along with financial incentives up to 3-4% of the overall cost.
  • One of the significant challenges that data center operators confront in Delhi is the rising cost of land acquisition, which raises the initial expenditure required to set up a data center. Because most existing availability zones are in formerly industrial areas rapidly becoming mainstream, alternatives are limited, and land costs are rising. Furthermore, land titles in the region frequently need to be clarified. This has become a problem for data center operators.

Delhi-NCR Data Center Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.

The Delhi-NCR data center market is segmented by dc size (small, medium, large, massive, and mega), tier type (tier 1 and 2, tier 3, and tier 4), and absorption (utilized (colocation type (retail, wholescale, and hyperscale), end user (cloud and IT, telecom, media and entertainment, government, BFSI, manufacturing, and e-commerce)), and non-utilized). The market sizes and forecasts are provided in terms of value (MW) for all the above segments.

By DC Size
Small
Medium
Large
Massive
Mega
By Tier Type
Tier 1 and 2
Tier 3
Tier 4
By Absorption
Utilized
By Colocation Type
Retail
Wholesale
Hyperscale
By End User
Cloud and IT
Telecom
Media and Entertainment
Government
BFSI
Manufacturing
E-Commerce
Other End Users
Non-Utilized
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Delhi-NCR Data Center Market Size Summary

The Delhi-NCR data center market is poised for significant growth, driven by the increasing demand for cloud-based solutions and the adoption of hybrid IT approaches. The region is experiencing a digital revolution, with businesses increasingly relying on third-party colocation facilities to manage their data center operations. This shift is further fueled by the rising use of technology and the growing consumer preference for cloud access, which allows for remote data retrieval. The Indian government's proactive measures, including substantial financial incentives and support for real estate and consulting, are encouraging the establishment of data centers in the region. However, challenges such as rising land acquisition costs and unclear land titles pose obstacles for data center operators in Delhi.

The market is characterized by a fragmented landscape, with key players like NTT Data, Nxtra Data Limited, CtrlS, STT Telemedia, and Yotta Infrastructure Solutions LLP employing strategies such as mergers, acquisitions, and strategic partnerships to expand their market presence. The demand for data centers is further bolstered by the increasing smartphone adoption and data consumption in India, particularly in Delhi, which is becoming a hub for data usage. The rollout of 5G and the growing use of IoT-connected devices are expected to further drive demand. Additionally, the government's investment in the data center ecosystem, along with state-level incentives, is set to enhance the region's position as a key player in the global data center market.

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Delhi-NCR Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 By DC Size

      1. 1.1.1 Small

      2. 1.1.2 Medium

      3. 1.1.3 Large

      4. 1.1.4 Massive

      5. 1.1.5 Mega

    2. 1.2 By Tier Type

      1. 1.2.1 Tier 1 and 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 By Absorption

      1. 1.3.1 Utilized

        1. 1.3.1.1 By Colocation Type

          1. 1.3.1.1.1 Retail

          2. 1.3.1.1.2 Wholesale

          3. 1.3.1.1.3 Hyperscale

        2. 1.3.1.2 By End User

          1. 1.3.1.2.1 Cloud and IT

          2. 1.3.1.2.2 Telecom

          3. 1.3.1.2.3 Media and Entertainment

          4. 1.3.1.2.4 Government

          5. 1.3.1.2.5 BFSI

          6. 1.3.1.2.6 Manufacturing

          7. 1.3.1.2.7 E-Commerce

          8. 1.3.1.2.8 Other End Users

      2. 1.3.2 Non-Utilized

Delhi-NCR Data Center Market Size FAQs

The Delhi-NCR Data Center Market is projected to register a CAGR of 28.02% during the forecast period (2024-2030)

STT Telemedia, CtrlS, NTT Data, Nxtra Data Limited and Yotta Infrastructure Solutions Llp are the major companies operating in the Delhi-NCR Data Center Market.

Delhi-NCR Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)