USD
GBP 
CNY 
EUR 
INR 
JPY 
MYR 
ZAR 
KRW 
THB 
Indian Data Center Colocation Services Growth Opportunities
Future Growth Potential of Data Centers in India Due to Rise in Hyperscale Demand
25-Aug-2021
South Asia, Middle East & North Africa
Market Research
PC11-01-00-00-00
IT04376-SA-MT_25720
Indian data center colocation services is one of the fastest growing markets in the world largely driven by demand for colocation services from hyperscale cloud segment, OTT players, and content providers. The demand for hyperscale data center capacity has been growing at a good pace in India for the last couple of years. The growth is attributed to multiple factors, such as enterprises moving their IT infrastructure to the public cloud, high consumer demand for app-based/OTT services running on the cloud, and rapid increase in internet data consumption. In addition, the government’s mandate on data localization is encouraging the public cloud providers and big tech companies to host their data in the data centers situated within India. Hence, it is also contributing toward the demand for hyperscale data center colocation.
While hyperscale demand is expected to drive majority of data center colocation growth in the coming years, enterprise/retail demand from BFSI and IT verticals will drive a sustained contribution to the growth of data center colocation market in India. Enterprises are shifting from their captive establishment to colocation data centers to reduce capital expenditure, achieve higher operational efficiencies, and leverage state-of-the-art infrastructures of colocation facilities. The outbreak of COVID-19 has further strengthened enterprise movement from captive data centers to colocation facilities to ensure business continuity.
Competitive intensity in India is increasing rapidly with the entry of new domestic participants, such as Yotta Infrastructure and Adani Group, and global firms, such as Equinix and Colt, leading to emphasis on service differentiation. Increasing complexity in data center operations and high cost of real estate and power are the two major restraints for colocation service providers, and also act as key barriers for new entrants.
This research service provides an analysis of the Indian data center colocation services market, covering market trends, strategic imperatives, recent developments, market drivers and restraints, market size and revenue forecast (for a time period of 2020 to 2025), compound annual growth rate, market share (by raised floor space and industry vertical demand split), competitive landscape, key participants, and growth opportunities. The study uses both primary and secondary research based on Frost & Sullivan’s proprietary methodology to obtain valuable insights and generate informative content.
Key companies covered are:
• ST Telemedia India
• NTT Netmagic
• Nxtradata
• CtrlS
• Sify Technologies
Author: Kapil Baghel
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
Impact of the Top Three Strategic Imperatives on Indian Data Center Colocation Services Market
Growth Opportunities Fuel the Growth Pipeline Engine™
Data Center Colocation Services Market Scope of Analysis
Indian Data Center Colocation Market Ecosystem
Key Growth Metrics for Indian Data Center Colocation Services Market
South Colocation Services Market
Forecast Assumptions—Indian Data Center Colocation Services Market
Revenue Forecast—Indian Data Center Colocation Services Market
Revenue Forecast Analysis—Indian Data Center Colocation Services Market
Trend 1—Balanced Growth in Supply and Demand Capacity is Keeping DC Utilization Between 80%–85% in India
Trend 2—Enterprises Shifting from On-premises Infrastructure to Colocation Facilities for Business Continuity and Efficiency
Trend 3—Government in India Pushing for Data Center Growth Through Data Localization Norms and Incentive-based Policies
Other Major Market Trends in the Indian Colocation Market
Competitive Landscape
Competitive Landscape and Supply-side Analysis
Competitive Landscape and Supply-side Analysis (continued)
Competitive Landscape and Supply-side Analysis (continued)
Competitive Landscape and Supply-side Analysis (continued)
Competitive Landscape and Supply-side Analysis (continued)
Competitive Landscape and Supply-side Analysis (continued)
Demand Analysis by Vertical Segments
Growth Drivers for Data Center Colocation Services Market
Growth Drivers Analysis for Data Center Colocation Services Market
Growth Drivers Analysis for Data Center Colocation Services Market (continued)
Growth Restraints for Data Center Colocation Services Market
Growth Restraints Analysis for Data Center Colocation Services Market
Key Colocation Data Center Locations in India
Indian Data Center Colocation Market—Location Analysis
Indian Data Center Colocation Market—Location Analysis (continued)
Recent Developments and Highlights
Recent Developments and Highlights (continued)
Growth Opportunity 1: Rapid Rise in Colocation Demand from Hyperscalers/OTT Companies Offers a Huge Growth Potential for Colocation Business
Growth Opportunity 1: Rapid Rise in Colocation Demand from Hyperscalers/OTT Companies Offers a Huge Growth Potential for Colocation Business (continued)
Growth Opportunity 2: The Shift of Enterprises from Captive to Colocation Model will Augment the Retail Colocation Demand
Growth Opportunity 2: The Shift of Enterprises from Captive to Colocation Model will Augment the Retail Colocation Demand (continued)
Growth Opportunity 3: Emergence of IoT, 5G, and Edge Computing will Create Opportunities for Edge Data Centers
Growth Opportunity 3: Emergence of IoT, 5G, and Edge Computing will Create Opportunities for Edge Data Centers (continued)
The Last Word
List of Exhibits
Legal Disclaimer
Speak directly with our analytics experts for tailored recommendations.
Recent related IT Services and Applications research
26 Oct 2026 | North America | Frost Radar
Frost Radar™: Data Center Colocation Services in North America, 2026
Data center colocation services have become a foundational component of enterprise digital infrastructure, enabling organizations to balance performance, security, scalability, and cost optimization across increasingly distributed IT environments. Colocation facilities serve as critical interconnect...
23 Oct 2026 | Global | Technology Research
Growth Opportunities in GPU-as-a-Service, Hyperscale & AI-Focused Digital Infrastructure, AI-ready Data Center, Prompt-based Builder, Docs-as-code, and Artificial Chip Intelligence
This edition of the IT, Computing and Communication Technology Opportunity Engine explores GPU-as-a-Service, Hyperscale & AI-Focused Digital Infrastructure, and AI-Ready Data Centers to scale AI compute capabilities. Prompt-Based Builders and Docs-as-Code accelerate software development, while Artif...
16 Oct 2026 | Global | Frost Radar
Frost Radar™: Satellite IoT, 2026
Direct-to-device (D2D) connectivity and 3GPP NTN standards are reshaping the satellite IoT market. Release 17 enabled satellite NB-IoT through standard cellular modules, SIMs, and devices. The shift to 5G New Radio NTN supports higher-throughput, delay-sensitive services, such as direct-to-smartphon...
15 Oct 2026 | Latin America | Frost Radar
Frost Radar™: Managed Cloud Service Providers in Latin America, 2026
Cloud has become an established component of enterprise technology strategy in Latin America, but adoption has not necessarily reduced complexity. Many organizations now operate fragmented environments: public cloud, private cloud, on-premises infrastructure, legacy applications, SaaS platforms, and...
13 Oct 2026 | Global | Strategic Imperatives
Top 10 Strategic Imperatives for Public Cloud Services, Global, 2026
The global public cloud services industry is shifting from an era focused primarily on cloud migration and cost optimization to one centered on control, trust, intelligence, and measurable business outcomes. Enterprises are no longer asking whether workloads belong in the cloud. Instead, they are de...
Purchase includes:
- Report download
- Growth Dialog™ with our experts
Growth Dialog™
A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
- Companies to Action
Impacting your company's future growth potential.