![The growth of data centers in India is very bright The growth of data centers in India is very bright](https://varindia.com/public/storage/news/uploads/2018/02/656438bb1d78c.jpg)
The Indian data center market is expected to grow at a CAGR of 10.3% from 2023 to 2028, reaching a value of $9.23 billion by 2027. Small and large data centers are the cornerstone for a successful digital transformation strategy, housing the infrastructure crucial for hosting business-critical workloads.
In India, with the rapid creation and consumption of data, the popularity of data centers has been on the rise. Furthermore, the propensity of citizens to access services via digital mode is accelerating the growth of data centers. In 2023, the total number of data centers in India is estimated to be 151.
There are a number of factors that are driving the growth of data centers in India. One factor is the rapid creation and consumption of data. According to a Cisco study, India's data traffic is expected to grow at a compound annual growth rate (CAGR) of 26% between 2020 and 2025.
Another factor driving the growth of data centers is the propensity of Indian citizens to access services via digital mode. According to a report by the Internet and Mobile Association of India (IAMAI), the number of internet users in India is expected to reach 900 million by 2025.
As the country has developed a range of digital public infrastructure stacks such as Aadhar, CoWIn, ONDC, and UPI, the ecosystem to store and save them is equally important. Identifying the future demands, the data center companies, both domestic as well as international, are coming together to prepare specific business use cases. Moreover, the growth at the enterprise level is fuelled by organizations keen to adopt new game-changing technologies such as AI/ML, IoT, Cloud, Blockchain, Big Data, AR/VR, etc.
Modern enterprises pursuing rapid digital transformation to add value are digitizing their core services, leading to an exponential increase in data consumed and produced. In the coming decade and even now, a dominant portion of the services we access is expected to be digitized. Modern data centers with incredible computational power is expected to improve the quality of service and our lives.
Summing up, the future of the growth of data centers looks perfectly on track with a continuously evolving ecosystem. India is uniquely poised to make the most of this digital transformation opportunity, and data centers built around advanced GPU acceleration capabilities will change how we are perceived as a technology laggard.
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