India’s Data Center

India is experiencing an extraordinary surge in digital infrastructure, driven by growing internet usage, rapid adoption of emerging technologies and robust policy support. At the core of this digital transformation lies the data center (DC) industry. The report “The Digital Backbone: Data Center Growth Prospects in India” (May 2025) by Colliers highlights how India is poised to become a major global hub for data centers, with substantial growth predicted across Tier I and Tier II/III cities.

Globally, the data center market is expanding at a rapid pace, catalyzed by technologies like artificial intelligence (AI), cloud computing, machine learning and generative models. In 2024, global data generation reached 150 zettabytes, a 2.3x increase compared to 2020. This number is expected to double again in the next 3-4 years. The demand for secured, high-speed data storage and processing infrastructure is leading to a projected CAGR of 9-10% in the global DC market, currently valued at around $300 billion.