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Hyderabad Data Center Market Size (2024 - 2029)

The Hyderabad data center market is poised for significant growth, driven by the increasing migration of organizations to cloud services and the adoption of advanced digital technologies. This expansion is fueled by the rising demand for data center capacity, as businesses accelerate their digital transformation efforts. However, the high costs associated with data center infrastructure, including electrical and mechanical equipment, may pose challenges to market growth. The COVID-19 pandemic has further intensified the demand for data center capacity, as remote work and increased online activities strain existing resources.

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Market Size of Hyderabad Data Center Industry

Hyderabad Data Center Market Summary
Study Period 2018 - 2030
Base Year For Estimation 2023
Market Volume (2024) 54.53 megawatt
Market Volume (2030) 430.99 megawatt
CAGR (2024 - 2030) 20.12 %
Market Concentration Low

Major Players

Hyderabad Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Hyderabad Data Center Market Analysis

The Hyderabad Data Center Market size in terms of installed base is expected to grow from 54.53 megawatt in 2024 to 430.99 megawatt by 2030, at a CAGR of 20.12% during the forecast period (2024-2030).

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.

  • Due to the rise in online demand and remote working, organizations are moving more quickly to the cloud and adopting more adaptable digital workspaces. Cloud services are based on data centers, even though the cloud is the foundation of digital transformation. As a result, the migration of companies to the cloud is fueling the expansion of the Indian data center market.
  • The digital transformation of many industries and the public sector has changed significantly due to the increased adoption and practical applications of cutting-edge technologies like artificial intelligence, machine learning, big data and analytics, the Internet of Things, and blockchain, among others.
  • For instance, CapitaLand declared the opening of its hyperscale data center in Hyderabad in June 2022. The location is a well-established corridor for IT-ITES enterprises and data centers and is within the commercial core of International Tech Park Hyderabad, Madhapur. With a total facility load of 40MW and a dedicated GIS substation on-site, the state-of-the-art data center facility will showcase cutting-edge technologies in cooling and security. It will offer advanced solutions in today's digital ecosystem.
  • Additionally, the cost of the data center infrastructure is higher for the purchase and installation of electrical equipment, such as transformers, patch panels, UPSes, auto transfer switches, and generators, as well as mechanical equipment, such as computer room air conditioning units, refrigerant loops, condenser plants or chillers, etc. This may restrict Hyderabad's data center market's ability to expand.
  • Lastly, the COVID-19 pandemic impacted the national and regional service providers of data centers. Further, because of the extensive travel prohibition, many businesses turned to remote work, which sharply increased data traffic and strained the data center's ability to avoid outages. The insatiable demand for data center capacity is set to continue in the post-COVID-19 exponential growth trajectory increases as businesses accelerate their digital transformation programs to remain viable and domestic customers begin living even more of their lives online.

Hyderabad 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 Hyderabad data center market is segmented by dc size (small, medium, large, massive, mega), by tier type (tier 1&2, tier 3, tier 4), by absorption (utilized (colocation type (retail, wholescale, hyperscale), end user (cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce, and other end-users)), 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 & 2
Tier 3
Tier 4
By Absorption
Utilized
By Colocation Type
Retail
Wholesale
Hyperscale
By End User
Cloud & IT
Telecom
Media & Entertainment
Government
BFSI
Manufacturing
E-Commerce
Other End Users
Non-Utilized
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Hyderabad Data Center Market Size Summary

The Hyderabad data center market is experiencing significant growth, driven by the increasing demand for cloud services and digital transformation across various sectors. As organizations rapidly migrate to cloud-based solutions and adopt flexible digital workspaces, the need for robust data center infrastructure has surged. This trend is further fueled by the adoption of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things, which are transforming industries and public services. The establishment of hyperscale data centers by major players like CapitaLand, Microsoft, and AWS in Hyderabad underscores the city's strategic importance as a hub for IT-ITES enterprises. These facilities are equipped with state-of-the-art technologies to meet the growing demand for data storage, processing, and security solutions.

Despite the promising growth trajectory, the market faces challenges, including the high costs associated with data center infrastructure and the impact of the COVID-19 pandemic, which strained existing facilities due to increased data traffic. However, the government's supportive policies, such as the introduction of a data center policy in Telangana and incentives for infrastructure development, are expected to bolster market expansion. Key industry players are also leveraging strategic partnerships and investments to enhance their market presence. The fragmented nature of the market, with significant contributions from companies like Reliance Industries, Nxtra Data Limited, and Sify Technologies, highlights the competitive landscape and the ongoing efforts to scale operations and meet the burgeoning demand for data center services in Hyderabad.

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Hyderabad 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 & 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 & IT

          2. 1.3.1.2.2 Telecom

          3. 1.3.1.2.3 Media & 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

Hyderabad Data Center Market Size FAQs

The Hyderabad Data Center Market size is expected to reach 54.53 megawatt in 2024 and grow at a CAGR of 20.12% to reach 430.99 megawatt by 2030.

In 2024, the Hyderabad Data Center Market size is expected to reach 54.53 megawatt.

Hyderabad Data Center Market Report Snapshots

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