India’s Data Center Expansion: Key Players & Infrastructure Growth

India is undergoing a massive digital revolution, driven by internet penetration, cloud, AI, and big data analytics. With businesses, governments, and digital startup companies adopting digital transformation, the need for scalable, secure, and compliant data center solutions has never been higher.

Growth in Data Center and the Digital India Vision

India’s data center market is witnessing exponential growth. The driving factors, such as

  • 5G Deployment: 5G network deployment is driving data consumption, requiring low-latency data processing and edge computing functionality.
  • Digital India Initiatives: Government initiatives like Meghraj (GI Cloud) and Smart Cities Mission are forcing organizations to adopt cloud technology more.
  • Hybrid & Multi-Cloud Adoption: Organizations are embracing a mix of on-premise, private, and public cloud offerings to remain agile.

Top Data Center companies are expanding capacity in order to cope with increasing demand.

Why is India a good destination for Data Center Services?

  1. Geographical Advantage: positioned centrally, India makes it a good spot to link the East and the West using technology and online services.
  2. Data Localization Laws: Rules like the Personal Data Protection Bill are forcing businesses to store data within the country.

Increasing Cloud Adoption: cloud-first strategies are driving demand for trustworthy data center providers offering hybrid and private cloud hosting platforms.

Selecting an ideal Data Center Service Provider

As the market becomes more competitive, selecting among top data center service providers is a sensitive process. Organizations must compare providers to key criteria:

  • Scalability: Can the provider keep pace with your expansion in the next 5–10 years?
  • Security: Are there strong physical and cybersecurity measures? How do they deal with threat detection and breaches?
  • Compliance: does the provider follow important industry rules like ISO 27001, PCI DSS, and GDPR?
  • Location: Are their data centers situated at the right locations to make data move quickly?
  • Support: Do they offer customer and technical support 24/7?

Strong Security: More Than Just Compliance

Modern data center security is not just securing the location and fitting security cameras. It involves many layers of protection, such as

  • Intrusion Detection and Prevention Systems (IDPS)
  • Biometric checks like fingerprint or face scans
  • Disaster Recovery and Backup Facilities
  • Protection from online attacks
  • Secured ways to store and send data (encryption)

The Role of Managed Data Center Services

They seek managed data center services—offered by top data center management providers—on end-to-end solutions, including infrastructure provisioning up to cost management and workload optimization.

Advantages are

  • Simple to operate
  • Enhanced Uptime and faster Performance
  • Remote Monitoring
  • Fixed and predictable costs.

Trends that are shaping the future of Data centers

  1. Green Data Centers: Consistent with rising ESG concerns driving investment in buildings lit by solar, liquid cooling infrastructure, and energy-efficient design.
  2. Edge Data Centers: Smaller data centers placed closer to users to support fast services like IoT, AR/VR, and autonomous systems.
  3. AI & ML in Data Center Operations: Predictive maintenance, real-time threat analytics, and resource allocation.
  4. Software-Defined Infrastructure: Flexible systems that can be easily changed and managed through software instead of fixed hardware setups

Why Businesses Rely on Indian Data Center Providers

Indian Data Center providers are constructing facilities that aim to match those of international players. Why are they different?

  • Domestic talent with global vision
  • Clear understanding of regulatory mandate
  • Affordable pricing models
  • Customer-focused high Service Level Agreements (SLAs)
  • Specialised BFSI, government, healthcare, and e-commerce offerings

What lies ahead for India’s Data Center

With more industries becoming digitized —like digital banking, smart government, and telemedicine healthcare—data center management will become more important and more complex.

The future belongs to providers who can:

  • Scale dynamically
  • Maintain zero downtime
  • Deliver top-notch security
  • Align with India’s growing digital sovereignty movement

Final Thoughts

India is striving to become a world leader for data center services— government policies, a thriving digital economy, and increased demand for localized, secure cloud infrastructure.

Whether you’re a fintech startup that wants to scale, a public sector organization that wants to better serve citizens, or an enterprise that is adopting hybrid IT—ESDS Software Solution Limited aims to provide the agility, durability, and regulatory compliance that your digital tomorrow requires.

Because today, the question isn’t whether your business needs a data center. It’s whether your data center partner is future-ready. With ESDS Software Solution Limited, the answer is a confident yes.

Why Data Centers Are Critical to India’s Digital Growth?

India is undergoing a digital revolution, and at the heart of this transformation lies one essential yet often overlooked engine—data centers. As smart devices multiply, cloud computing accelerates, and internet usage crosses 1.1 billion wireless subscribers, the demand for secure, scalable, and reliable data storage infrastructure has never been higher. From powering real-time transactions and AI workloads to enabling government e-governance services, data centers form the digital backbone that supports everything from fintech to online learning. With the rapid rollout of 5G, explosive growth in digital payments, and the rise of deep-tech start-ups, India is emerging as one of the world’s fastest-growing data center services markets—and the next few years will define its trajectory.

India’s Data Center Market Size and Growth Projections

The data center market in India is currently valued at INR 82 billion, with around 85,000 racks for co-location, and is projected to grow at a compound annual growth rate (CAGR) of 21.4% from fiscal year 2020 to fiscal year 2024. The market in the future is expected to grow at a CAGR of 19.7%, from INR 82 billion in fiscal year 2024 to INR 240 billion in fiscal year 2030. As of 31st March 2024, the total data center installed capacity in India is 1050 MW, and the total utilized capacity in India for data centers stands at 850 MW.

Market Segmentation for India’s Data Center Industry by Major Cities

As of 31st March 2024, India’s current data center capacity stands at 1,050 MW, with approximately 94% of this capacity concentrated in major cities. Among these cities are Mumbai and Chennai, which lead the sector. Mumbai alone accounts for 48% of India’s total data center capacity, supported by its strategic submarine landing stations, infrastructure for power and fiber optics, and significant demand from the banking, financial services, and BFSI sectors. Meanwhile, Delhi and Kolkata serve as the primary locations in North and East India, catering to regional enterprise demand, with Delhi anticipated as a significant player with substantial capacity additions on the horizon.

Along with this, data centers are experiencing significant growth as they expand into Tier-2 and Tier-3 cities, driven by advantages and increasing demand for digital infrastructure. Cities such as Nashik, Kochi, and Jaipur are becoming key players in this expansion. Leading companies like ESDS Software Solution Limited are actively pursuing opportunities to establish their presence in these smaller cities.

End-user Segmentation by Industry

The data center market is characterized by a diverse range of end-user sectors, with the Banking, Financial Services, and Insurance (BFSI) sector leading the way, accounting for 45% of total revenues. Enterprises follow closely, representing 35% of the market, driven by their increasing reliance on cloud services and digital transformation initiatives. The government sector contributes 15%, focusing on e-governance and secure data management, while other sectors collectively make up the remaining 5%. This distribution highlights the varying needs and priorities of different industries in leveraging data center capabilities to support their operations. Players with a well-diversified presence across multiple industry segments have already built a strong foundation in the Indian data center and cloud market.

Types of Data Centers

Below is the list of data centers as shown below:

  • Managed Data Centers—Combines co-location services with managed IT support, allowing businesses to rent space for servers and outsource infrastructure management to specialized vendors. It helps businesses focus on core activities without IT management burdens.

Key Benefits:

  • Expert management of IT resources.
  • Flexible scalability
  • Focus on strategic initiatives
  • Reduced IT management burden
  • Colocation Data Centers—Provides physical space to house servers and networking equipment, offering power, cooling, security, and connectivity. This model allows businesses to share infrastructure costs while maintaining control over their hardware.

Key Benefits:

  • Enhanced security measures
  • Cost savings on infrastructure investments.
  • Improved interconnectivity with network providers.
  • Hyperscaler Data Centers—Large-scale facilities supporting data processing, computing, and storage services for major organizations.

Key Benefits:

  • Extreme scalability
  • Cost efficiency through economies of scale and performance infrastructure for rapid growth.

Conclusion

India’s growing digital economy relies on the strength and scalability of its data centers. From metro hubs to emerging Tier-2 cities, data centers are expanding infrastructure to support the surge in demand. Organizations like ESDS Software Solution Limited offer data center colocation data center services, allowing businesses to securely house their own IT infrastructure while benefiting from redundant power, cooling, and high-speed connectivity. This is ideal for businesses needing physical control over their hardware while leveraging a professional Data Center environment.

Top 5 Integrated Security Measures for Modern Data Centers

With the increasing demands of Industries for IT infrastructure due to vast volumes of data, the security of these data centers has also become more important than ever. Modern data centers are not just large storage facilities; they are highly complex environments offering a range of data center services, including real-time data management, cloud integration, and disaster recovery. Particularly in growing hubs like in India – Bangalore, Mumbai, and Mohali – considering the recent cyber attacks, the demand for reliable data center services has skyrocketed. According to Gartner, global cybersecurity spending is expected to reach $260 billion by 2027. In this blog, we’ll explore the top 5 integrated security measures essential for securing today’s data centers, especially those managed by top data center service providers.

Physical Security Control

Data center and digital security are synonymous, physical security forms are the first line of defence. Data center facilities must be equipped with multi-layered physical security measures such as biometric access, surveillance cameras, and perimeter fencing.

Firewall and Intrusion Detection Systems (IDS)

Firewalls prevent unauthorized access while monitoring incoming and outgoing traffic. implementing a robust firewall system is one of the most essential tools for securing a data center

Data center services must also incorporate Intrusion Detection Systems (IDS) to flag suspicious activities. In addition to monitoring traffic, IDS provides real-time notifications to IT managers about potential breaches. Leading data center service providers focus heavily on these technologies to prevent attacks before they compromise the system.

Encryption and Data Masking

Modern encryption protocols are now seamlessly integrated with various data center services to safeguard sensitive information. Data center management companies in India also offer data masking techniques to anonymize datasets, which is particularly useful for businesses handling sensitive personal data. This not only ensures compliance with data privacy regulations but also strengthens data security layers against breaches.

Emerging Technology: As encryption technology advances, quantum encryption is being explored as the next step in securing data. While still in its nascent stage quantum encryption promises unbreakable encryption by utilizing the principles of quantum mechanics, ensuring that any interception of data would immediately be detected. Forward-thinking data center service providers are beginning to investigate its potential integration into their infrastructure to future-proof data security.

Multi-Factor Authentication (MFA)

Password protection alone is not just enough in today’s complex cyber threat environment.  Leading data center service providers now go for Multi-Factor Authentication (MFA) to protect against unauthorized system access. MFA integrates multiple forms of identification such as passwords, OTPs, and biometric scans, providing an extra layer of protection.

Many data center services in India incorporate MFA as a standard offering to provide enhanced security for enterprises operating in high-risk industries like finance and healthcare.

Cloud and Hybrid Cloud Security

Given the rapid growth of cloud adoption, many businesses are moving toward hybrid models that combine on-premises and cloud-based infrastructure. This shift introduces new security challenges, especially in data flow between environments. Data center service providers now offer specialized cloud and hybrid cloud security measures, ensuring data integrity and security across platforms. Cloud-native security tools like container security and continuous monitoring solutions help mitigate these risks.

Sustainability and Green Data Centers

Sustainability is no longer a buzzword; it is a critical focus for many businesses. To meet this demand, data centers in India, particularly in Bangalore and Mumbai, are investing in energy-efficient cooling systems, renewable energy sources, and green building certifications to reduce their carbon footprint. Companies choosing eco-friendly data center services benefit from both operational cost savings and enhanced brand reputation. The use of modular designs and renewable energy helps lower operational costs and make data centers more sustainable in the long run.

 DDoS Protection

Distributed Denial of Service (DDoS) attacks remain one of the most common threats to modern data centers. Top data centers in India now offer integrated DDoS protection as part of their security services, using advanced filtering and traffic analysis to prevent large-scale attacks from disrupting services. With the rise in cyber threats, DDoS mitigation strategies are essential to ensure continuous data flow and operational uptime.

Why Choose ESDS Data Center Services?

As one of the top data center providers in India, ESDS Data Center Services is dedicated to offering state-of-the-art integrated security measures. With data centers in Bangalore, Mumbai, and Mohali, ESDS focuses on delivering comprehensive solutions, including physical security, encryption, and AI-driven predictive security tools. Whether you’re looking to enhance your security framework or deploy a fully managed cloud infrastructure, ESDS provides unparalleled expertise and reliability to keep your data safe, compliant, and future-proof.

Secure your business data today with ESDS Data Center Services—India’s leading data center management company.

Top 7 Data Center Solution Providers in India You Should Know

Top 7 Data Center Solution Providers in India

Arising Need for More Data Centers in India

India has witnessed a digital boom in this past decade, which is only going to rise exponentially in the future. As per a study by Statista, India is the second-largest online market in the world and the projected number of internet users in India will reach 650 million by 2023. The consistent hike in internet users, government interest in digitizing India’s market with its ‘Digital India’ initiative, and the arrival of the 5G network add fuel to making India a truly digital nation. This growth also generates a huge demand for data center infrastructure.

Top 7 Data Center Solution Providers in India

Owing to the need for Data Center Infrastructure in India, the Ministry of Electronics and Information Technology (MeitY) is planning to introduce a national policy framework for data centers across the country. While big tech giants are already providing data center services and solutions in India, there are still local data center service providers that are dominating the Indian market. What gives a competitive edge to local data center service providers over global data center service providers is their better understanding of Indian businesses’ needs and subsequent service offerings. What’s more? The government’s data localization law has led to higher significance for the regional data centers. Let us take a look at the top 7 data center solution providers in India.

Top 7 Data Center Solution Providers in India

1. ESDS Software Solutions Ltd.

ESDS is a very common name in the Indian tech world for being one of the leading managed data center services and auto-scalable cloud solution providers. ESDS operates three data centers in India, which are located in Navi Mumbai, Nashik, and Bengaluru. These data centers have state-of-the-art infrastructure and are highly secure with high uptime levels and 24×7 technical support.

ESDS serves across various industries including BFSI, Manufacturing, Education, Healthcare, Hospitality, eCommerce, Agriculture, IT & Telecom, Government, etc. ESDS claims to have the largest baking customers in India with a total number of 400, Furthermore, it serves 150+ organizations utilizing their SAP HANA cloud services, and over 200 government institutions using their cloud platforms.

2. CtrlS

Dubbed as Asia’s Largest Rated 4 Hyperscale Datacenter, CtrlS has Data Centers in Hyderabad, Mumbai, Noida, and Bengaluru. The company claims to be serving 60 of the fortune 500 companies.

3. Sify Technologies

Sify is recognized for its wide array of ICT Solutions and Services. With its breakthrough technical offerings in the Indian market, Sify also provides data center services in India and has 10 operational data centers with 24*7 tech support and caters to over 8500 enterprise customers. It has also set its footprints in the United States.

4. STT GDC India

Formerly known as Tata Communications Data Centers Pvt. Ltd. has 21 Data Center facilities across nine cities in India. The organization has been a catalyst in data center innovation and is serving 1000+ customers globally.

5. Yotta

Yotta Infrastructure provides hyper-scale tier IV data center solutions in India. They have proven expertise in offering colocation, hybrid multi-cloud, Managed IT, and security services. Currently, they have a data center in Navi Mumbai and are coming up with new data centers at Delhi NCR, Chennai DC Park, Pune, Kolkata, and Gujarat.

6. Netmagic (An NTT Communications Company)

Netmagic Global Data Centers is a division of NTT Ltd. It has 10 data centers in major cities and 160 data centers across 20 countries. It is a leading data center in India in terms of market share. It has been a recipient of hyper-scale data centers, multi-tenant data centers awards and has also won managed to host service provider of the year.

7. Web Werks

Web Werks offers data centers at multiple locations in India. Each of these data centers meets the highest requirements in terms of security, availability, scalability, and best-in-class service support and uptime.

To Conclude

Identifying the market needs, many Indian data center service providers are expanding their data center facilities and are ensuring to build data centers with the latest features and world-class standards. As per a report by JLL, India’s data center industry will see a double growth and cross the 1GW mark by 2023 and the capacity will grow from 499MW in H1 2021 to 1008 MW by 2023. Considering how crucial is data in today’s time, it is only wise to choose the best data center service providers that have expertise in providing services for your industry vertical. Be wise, choose right.