India Hyperscale Data Center Market Research Report By Type (Colocation Data Centers, Cloud Data Centers, Enterprise Data Centers, Managed Data Centers), By Service Type (Infrastructure as a Service, Platform as a Service, Software as a Service), By End User (IT Services, Telecommunications, Web Services, Financial Services, Healthcare) and By Cooling Technology (Air-based Cooling, Liquid Cooling, Evaporative Cooling) - Forecast to 2035

India Hyperscale Data Center Market Overview

As per MRFR analysis, the India Hyperscale Data Center Market Size was estimated at 1.94 (USD Billion) in 2023. The India Hyperscale Data Center Market Industry is expected to grow from 2.07(USD Billion) in 2024 to 4 (USD Billion) by 2035. The India Hyperscale Data Center Market CAGR (growth rate) is expected to be around 6.174% during the forecast period (2025 - 2035)

Key India Hyperscale Data Center Market Trends Highlighted

India Hyperscale Data Center Market is expanding significantly due to a number of important factors. Organizations are adopting hyperscale data centers as a result of the growing demand for cloud services, which is being driven by digital transformation projects across multiple sectors. Scalable, effective, and dependable data storage solutions are becoming more and more necessary as more companies move to cloud environments. The construction of data center infrastructure is also supported by the Indian government's push for programs like "Digital India" and the National Policy on Data Centers, which foster an atmosphere that is conducive to investment in this industry. This expanding market offers a number of options to investigate. 

Many hyperscale data center operators are adopting energy-efficient technologies and renewable energy sources as a result of the growing trend towards sustainability. There is potential for creative solutions that use green technologies and limit energy use as businesses work to lower their carbon footprints. Additionally, data center operators have a lot of opportunity to provide the increasing need for data and connectivity solutions, especially in tier-2 and tier-3 cities, given India's rapid internet penetration and smartphone usage. Recent trends show that businesses in the tech ecosystem are working together more and more.To improve their data center capabilities and promote regional growth, major international IT companies are forming alliances with regional participants. 

In an effort to lower latency and enhance service delivery for linked devices, attention is also turning to edge computing. As data centers grow, the cybersecurity environment is changing, and operators are now giving strong security measures top priority in order to shield sensitive data from new threats. The India Hyperscale Data Center Market's collaborative push for innovation and scalability represents a dynamic and quickly changing environment.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

India Hyperscale Data Center Market Drivers

Growth in Digital Transformation Initiatives

The ongoing digital transformation across various industries in India is a significant driver for the India Hyperscale Data Center Market Industry. As Indian businesses increasingly adopt cloud computing, big data analytics, and Internet of Things (IoT) technologies, the demand for hyperscale data centers is expected to surge. In 2021, the Indian Information Technology industry witnessed a growth of approximately 8.4 percent, contributing significantly to the overall economy, as stated by the National Association of Software and Service Companies (NASSCOM).

This growth indicates a rising demand for IT infrastructure that can support advanced data processing needs. Major tech companies, including Tata Consultancy Services and Infosys, have also ramped up their digital transformation efforts, further propelling the requirement for hyperscale facilities. With the increasing reliance on data-driven decision-making, the hyperscale data center market is positioned to expand to meet this burgeoning demand.

Government Initiatives to Boost Data Center Infrastructure

The Indian government has been actively promoting initiatives to enhance digital infrastructure, providing strong support for the India Hyperscale Data Center Market Industry. The Ministry of Electronics and Information Technology has implemented policies aimed at increasing the availability of reliable internet services and improving data security measures. For instance, the National Digital Communications Policy 2021 aims to increase fiber connectivity to rural areas, potentially increasing internet penetration from 30 percent to over 80 percent in the next decade.

This policy creates a favorable environment for data center investments, as a higher number of connected users translates to greater data traffic, thereby increasing the demand for hyperscale data centers. Major players like Microsoft and Amazon Web Services have shown optimism by investing in large-scale data center operations in India, indicating confidence in the government's initiatives.

Surge in Data Generation from IoT Devices

The exponential growth of Internet of Things (IoT) devices is driving the demand for hyperscale data centers in India. The Indian IoT market is expected to grow at a Compound Annual Growth Rate (CAGR) of 26.7 percent from 2020 to 2025, as highlighted by the Ministry of Electronics and Information Technology. This surge in data generation necessitates more robust data management and processing capabilities, which hyperscale data centers can provide efficiently.

As businesses from sectors like agriculture, healthcare, and manufacturing increasingly deploy IoT solutions, the data generated from these devices will overwhelm traditional data centers. Companies like Reliance Industries and Infosys are already investing in IoT technologies, thereby driving the need for advanced data infrastructure to manage and analyze massive data workloads, further supporting the expansion of the hyperscale data center market.

Increased Investment in Cloud Services

The growing trend of cloud adoption in India has a strong impact on the India Hyperscale Data Center Market Industry. According to the Telecom Regulatory Authority of India (TRAI), enterprises in India are expected to allocate around 40 percent of their IT budgets to cloud services by 2025. This significant investment illustrates the shift towards cloud-based solutions, which require the capabilities of hyperscale data centers to efficiently manage large volumes of data.

Leading cloud service providers like Google Cloud and IBM are actively expanding their data center footprints in India to meet this increasing demand. This trend is crucial as it not only enhances service delivery but also underscores the necessity for scalable data center infrastructure to support virtual operations. Companies transitioning to the cloud will continue to drive the market as they seek powerful data management solutions.

India Hyperscale Data Center Market Segment Insights

Hyperscale Data Center Market Type Insights

The India Hyperscale Data Center Market, categorized by Type, is experiencing notable growth driven by several segments, including Colocation Data Centers, Cloud Data Centers, Enterprise Data Centers, and Managed Data Centers. Colocation Data Centers play a crucial role as they allow businesses to lease space, power, and cooling systems for their servers in a shared facility, which significantly reduces operational costs while enhancing scalability and reliability. This segment is gaining traction due to the increasing demand for efficient resource allocation amid a digital transformation across various industries. Cloud Data Centers, on the other hand, are proving to be essential as more companies shift to cloud services to enhance their IT efficiency and flexibility. The rising trend of remote work, coupled with robust advancements in cloud technology, fuels the expansion of this segment, making it a key component in the overall infrastructure landscape.

Enterprise Data Centers, typically owned and operated by a single organization, are also key players in the market. With Indian enterprises increasingly focusing on data sovereignty and control over their IT resources, this segment is witnessing a resurgence. Companies are exploring hybrid solutions to leverage the benefits of both in-house resources and external services, ensuring optimal performance and security for their specific needs. Managed Data Centers present another pivotal segment that offers outsourced services, allowing organizations to focus on their core activities while experts manage the data center operations. This segment is becoming increasingly significant as businesses aim to streamline their operations and reduce the complexity associated with IT management. Overall, the segmentation within the India Hyperscale Data Center Market is not just vital for catering to diverse customer needs but also reflects the broader trends influencing data management and resource utilization in an evolving technological landscape. This segmental diversity underscores the opportunities for innovation and investment that are shaping India's data infrastructure towards 2024 and beyond.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Hyperscale Data Center Market Service Type Insights

The India Hyperscale Data Center Market is increasingly characterized by diverse service types, reflecting the dynamic needs of various industries. The Service Type segment includes crucial components such as Infrastructure as a Service, Platform as a Service, and Software as a Service, which play significant roles in cloud computing and data management. Infrastructure as a Service is vital for organizations seeking scalable and cost-effective solutions to manage their IT infrastructure, enabling them to expand efficiently in response to demand.Platform as a Service supports developers by providing a robust environment for application development and deployment, fostering innovation in digital services. 

Software as a Service, which has seen rising adoption due to its ease of access and maintenance, offers businesses on-demand software solutions without the burden of managing underlying infrastructure. As businesses in India progressively shift to a digital-first approach, these service types are set to dominate, reflecting a broader trend of cloud migration while presenting opportunities for optimized performance and improved operational efficiency across sectors.The potential for growth in the India Hyperscale Data Center Market is substantial, addressing the ongoing demands of local enterprises and global organizations expanding their footprint within the region.

Hyperscale Data Center Market End User Insights

The India Hyperscale Data Center Market showcases a diverse End User landscape, comprising various sectors such as IT Services, Telecommunications, Web Services, Financial Services, and Healthcare, each playing a pivotal role in shaping the market dynamics. The IT Services sector, for instance, is a significant contributor due to the increasing demand for cloud computing, storage solutions, and data management. Telecommunications is also noteworthy, with the proliferation of 5G technology driving greater capacity and lower latency requirements, thus enhancing the need for expansive data centers. Web Services, primarily fueled by e-commerce growth and online streaming platforms, significantly influences market trends by demanding scalable and efficient data processing capabilities. 

Financial Services are witnessing a shift towards digital banking, necessitating fortified data infrastructures to maintain security and ensure compliance, thereby underscoring their importance. Also, the Healthcare sector increasingly relies on data centers for managing vast amounts of data generated from patient records, telemedicine applications, and healthcare analytics, emphasizing the critical role of secure and resilient data capabilities.Overall, each of these segments not only contributes to the market's growth but also brings unique challenges and opportunities, making them integral to the development and expansion of the India Hyperscale Data Center Market.

Hyperscale Data Center Market Cooling Technology Insights

The Cooling Technology segment within the India Hyperscale Data Center Market is pivotal in managing heat generated by high-density servers, thereby enhancing operational efficiency and extending the lifespan of critical infrastructure. Air-based Cooling remains a prevalent method due to its simplicity and cost-effectiveness, making it suitable for a broad range of applications. Liquid Cooling has gained traction as data centers evolve, offering improved thermal management and energy efficiency by transferring heat directly away from equipment, which is particularly significant in hyper-converged environments where space is at a premium.Evaporative Cooling is emerging as an innovative technique, leveraging natural processes to reduce energy consumption, thereby aligning with India's focus on sustainability and energy efficiency. 

With the increasing demand for cloud services and digital transformation across various industries, the India Hyperscale Data Center Market is witnessing a trend towards adopting advanced cooling solutions to optimize performance and minimize operational costs. Efficient cooling solutions are critical as they directly impact data center reliability and operational costs, thus presenting substantial opportunities for growth within this segment as organizations increasingly seek to invest in modernizing their infrastructure.

India Hyperscale Data Center Market Key Players and Competitive Insights

The India Hyperscale Data Center Market is experiencing significant growth driven by the increasing demand for cloud services and digital transformation across various sectors. As businesses seek to enhance their IT capabilities and improve operational efficiency, they are turning to hyperscale data centers that provide scalable infrastructure and lower operating costs. The competitive landscape is characterized by the presence of both domestic and global players who are vying for market share through innovative solutions, strategic partnerships, and extensive service offerings. 

Additionally, the growing trend of data compliance regulations in India is also compelling service providers to enhance their market presence to cater to a diverse client base, which includes enterprises, government organizations, and various industries looking to leverage the advantages of cloud computing and big data analytics.Amazon Web Services has established itself as a leader within the India Hyperscale Data Center Market, leveraging its extensive global infrastructure to provide a range of services tailored to local requirements. The company's strengths lie in its robust cloud offerings, which encompass computing power, storage solutions, and a wide array of advanced technologies such as machine learning and big data analytics. 

This extensive portfolio allows Amazon Web Services to cater effectively to diverse industry sectors, including finance, healthcare, and retail. Additionally, its commitment to innovation and customer satisfaction has enabled the company to form strong relationships with local businesses, facilitating rapid adoption of cloud technologies in India. The scalability and flexibility of its services have significantly contributed to making AWS a trusted partner for enterprises looking to embark on their digital transformation journeys.Digital Realty is also a key player in the Indian hyperscale data center space, recognized for its comprehensive approach to data center solutions that encompass colocation and interconnection services. The company's strengths include its focus on operational efficiency, sustainability initiatives, and providing high-density solutions that meet the growing demands for cloud and digital services. 

Digital Realty's presence in India has been marked by strategic investments and partnerships aimed at enhancing its service offerings to meet local market needs. The company has successfully navigated mergers and acquisitions to expand its footprint in the region, aligning itself with the evolving landscape of data center requirements. Key products and services offered by Digital Realty include managed hosting, cloud services interconnection, and custom-built data centers designed to facilitate seamless integration with leading cloud service providers. This strategic positioning has not only bolstered Digital Realty's market presence but also enabled it to provide robust facilities that are crucial for businesses aiming to thrive in a rapidly digitizing economy.

Key Companies in the India Hyperscale Data Center Market Include

• Amazon Web Services
• Digital Realty
• Sify Technologies
• NVIDIA
• Lumen Technologies
• Google Cloud
• Netmagic Solutions
• Tata Communications
• Adani Group
• Bharti Airtel
• Microsoft
• CtrlS
• Equinix
• Yotta
• Reliance Jio

India Hyperscale Data Center Market Industry Developments

The India Hyperscale Data Center Market has witnessed significant developments recently. Amazon Web Services and Microsoft continue to ramp up investments in data centers, with both companies announcing expansions to meet increasing regional demand for cloud services. The Indian IT Ministry declared on March 3, 2025, that AWS would invest $8.2 billion in the Maharashtra region in the upcoming years. In addition to introducing cutting-edge technology like GPU-rich nodes and AI-driven cloud services, the effort will grow its hyperscale cloud infrastructure, which will include data centers in Hyderabad and Mumbai. By 2029–2030, it is anticipated that this expansion would greatly increase employment and the capacity of digital infrastructure.On July 19, 2025, Madhya Pradesh inks an MOU for up to 1 GW of AI-ready data center capacity in Indore.

On July 19, 2025, the Madhya Pradesh government formally partnered with Submer Technologies SL, a Spanish company, to jointly create up to 1 gigawatt of energy-efficient, AI-optimized data center infrastructure. The partnership aims to stimulate local employment, training, and green innovation while emphasizing liquid-cooling design, 45% lower energy use, and up to 90% water savings.

India Hyperscale Data Center Market Segmentation Insights

Hyperscale Data Center Market Type Outlook

• Colocation Data Centers
• Cloud Data Centers
• Enterprise Data Centers
• Managed Data Centers

Hyperscale Data Center Market Service Type Outlook

• Infrastructure as a Service
• Platform as a Service
• Software as a Service

Hyperscale Data Center Market End User Outlook

• IT Services
• Telecommunications
• Web Services
• Financial Services
• Healthcare

Hyperscale Data Center Market Cooling Technology Outlook

• Air-based Cooling
• Liquid Cooling
• Evaporative Cooling

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	1.94(USD Billion)
MARKET SIZE 2024	2.07(USD Billion)
MARKET SIZE 2035	4.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.174% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Amazon Web Services, Digital Realty, Sify Technologies, NVIDIA, Lumen Technologies, Google Cloud, Netmagic Solutions, Tata Communications, Adani Group, Bharti Airtel, Microsoft, CtrlS, Equinix, Yotta, Reliance Jio
SEGMENTS COVERED	Type, Service Type, End User, Cooling Technology
KEY MARKET OPPORTUNITIES	Cloud adoption surge, Data privacy regulations, Renewable energy focus, 5G infrastructure expansion, Edge computing growth
KEY MARKET DYNAMICS	increased cloud adoption, rising data consumption, government incentives, energy efficiency focus, technological advancements
COUNTRIES COVERED	India