Data Center

India Data Center Market to More Than Double to $21 Billion by 2031

The India data center market was valued at $9.79 billion in 2025 and is projected to reach $21.03 billion by 2031, growing at a compound annual growth rate of 13.59%, according to a new market research report.

Mumbai, Navi Mumbai, Hyderabad, Chennai, and Pune are the preferred locations in India, with major investments from colocation service providers including ST Telemedia Global Data Centres, NTT DATA, CtrlS, Equinix, Sify Technologies, and Nxtra by Airtel.

Data center operators in India are showing increasing interest in adopting renewable energy for their facilities. In November 2025, CtrlS Datacenters announced it had signed a memorandum of understanding with NTPC Green Energy Limited, a subsidiary of NTPC Limited, to develop a renewable energy project with a capacity of around 2 gigawatts.

The growing demand for data centers in India is expected to increase requirements for power and water, the two major components of data center operations. While power challenges are likely to be reduced due to government initiatives and data center operators adopting renewable energy and in-house grid systems, water challenges may emerge as a new concern in the Indian data center market.

Most data centers are expected to adopt liquid cooling systems, which use less water than traditional cooling systems. In August 2025, CtrlS Datacenters launched the first phase of its Kolkata data center campus, which uses a liquid cooling system to manage heat.

The country hosts several major cloud operators, including AWS, Google, IBM Cloud, Microsoft, Oracle, OVH, and Tencent Cloud, with dedicated cloud regions spread across cities such as Chennai, Delhi NCR, Hyderabad, and Pune.

In India, some data center operators have adopted NVIDIA IT products to accelerate computing, networking, and software capabilities. Sify Technologies adopted NVIDIA DGX A100 systems, while RackBank deployed NVIDIA H100, A100, and GB200 GPUs for their data centers.

The market includes several global and local data center construction contractors, including AECOM, AIPL, DSCO Group, Ahluwalia Contracts, KEC International, Larsen & Toubro, Shubham EPC, Leighton Asia, and Sterling and Wilson. In January 2025, Shubham EPC announced it had started construction on two data center projects, NMDC02 and NMDC03, for STT Global Data Centres in Navi Mumbai.

Liquid cooling technology is gaining traction in the Indian market due to its higher thermal transfer properties compared to air-cooling systems. Sify Technologies utilizes liquid cooling in its data center facility at the Mumbai-Rabale campus and has planned to implement the system in other facilities across India, which will support approximately 130 kilowatts per rack. The company became the first data center in India to achieve NVIDIA DGX-Ready Data Centre certification for liquid cooling.

In November 2025, Johnson Controls announced the launch of the Silent-Aire Coolant Distribution platform, which is expected to provide scalable liquid-cooling capacities for data centers in India.