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The Indian data center market has been experiencing strong growth over the last few years. Driven by the rising internet penetration, explosion of data, and implementation of a favorable environment through the Digital India initiative of the government, the market is projected to continue its growth trajectory over the next three to four years. This growth and the rapid expansion of data centers across India are also aiding the growth of the construction market in the country.
Billions of dollars have been invested over the last few years, and several new projects have been announced in 2023, which is expected to further drive investment in the construction of new data centers from the short to medium-term perspective.
Notably, many global data center providers are also investing heavily in colocation data center projects in India. NTT, for instance, entered into a strategic collaboration with Prestige Group to develop a 100 MW data center facility in Bangalore. As part of the INR 7 billion deal, Prestige Group will develop three data center buildings for NTT, the first of which is expected to be ready by the end of H1 2024.
This partnership with NTT will enable Prestige Group to foray into the data center construction category for the first time. Over the years, the firm has focused on the residential, commercial, retail, leisure, and hospitality sectors in India. NTT, on the other hand, also launched a hyperscale data center facility in Chennai in June 2023. This is a clear testament to the growing interest of NTT in the Indian data center industry. Going forward, ConsTrack360 expects the trend to further continue from the short to medium-term perspective.
STT GDC is another firm that is investing in colocation data center facilities in India. The firm, in May 2023, announced an investment of US$241.9 million in two new data centers in Pune. The project will involve the construction of five buildings having a total capacity of 80 MW. The firm is expecting the new data centers to go live over the next 12 to 24 months and is also planning to further expand its data center capacity in the Indian market from the short to medium-term perspective.
Reliance Industries and Adani Group, two of the leading Indian conglomerates, are also foraying into the fast-growing data center market in India. The two firms have announced multi-million-dollar investments in the sector.
Investment in hyperscale data center projects is also on the surge in India in 2023. Lumina CloudInfra, one of the leading data center platforms, announced that the firm has started construction activities on its hyperscale data center project in Mumbai. The first phase of the construction is expected to be completed by 2025 and will enable Lumina CloudInfra to make significant inroads in the fast-growing data center market. Furthermore, the firm is also planning to develop and build another data center facility in Navi Mumbai from the short to medium-term perspective.
Overall, investment in the Indian data center market is poised to grow significantly over the next three to four years. This growing investment in the space will, therefore, keep aiding the growth of the construction market in India from the short to medium-term perspective. Based on ConsTrack360’s estimates, the Indian construction industry is poised to grow at a compound annual growth rate (CAGR) of 9.9% from 2023 to 2027. During the period, the construction industry output will increase from INR 45.9 trillion in 2023 to reach INR 66.9 trillion by 2027.
To know more and gain a deeper understanding of the construction market in India, click here.
