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Game-Changing Investments in India Data Center Construction Market with a Projected Investment of $3.5 Billion by 2028, AdaniConneX, Chindata Group, Princeton Digital Group, and SpaceDC Taking Center Stage - Arizton
The India data center construction market to reach USD 3.46 billion by 2028, growing at a CAGR of 14.76%.The rapid adoption of advanced technological solutions, including the Internet of Things (IoT), big data, and artificial intelligence (AI), significantly drives the demand for cloud services across various industries in India. Major cloud service providers in the country create opportunities for data center operators to expand their facilities during the forecast period. Cloud computing has emerged as an innovative solution transforming the banking sector, with an estimated 80% of corporate banks in India expected to leverage cloud technology for their trade finance and treasury operations by 2024.
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Big data is crucial in understanding customer needs and identifying market patterns. India embraces AI, big data analytics, and IoT across multiple industries as a developing country. These industries are experiencing a significant accumulation of data due to digital transformation initiatives driven by the widespread availability of high-speed internet and technological advancements.
India boasts a vast market opportunity with approximately 620 million active internet users, projected to reach around 900 million by 2025. As a result of increased digitalization, internet usage, and concerns regarding data security, the demand for data centers is expected to grow. Over the next three years, India plans to construct approximately 28 hyperscale data centers spanning more than 15 million square feet, with an IT power capacity exceeding 1,300 MW. Recognizing the country's emergence as a data-driven economy, the government is actively working to attract more investments in data centers, aligning with its Digital India mission.
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Key Highlights
In 2022, AWS, AdaniConneX, Ascendas India Trust, Equinix, EverYondr, Princeton Digital Group (PDG), BAM Digital Realty, Microsoft, Google, NTT, and SpaceDC were some of the key players in the India data center construction market. Regarding investment in the India data center construction market, AdaniConneX led the industry and was among the major investors in 2022, with multiple new projects in the country.
Many operators are investing in new facilities and expanding existing facilities as there is a surge in customer demand, making the region's market highly competitive. New entrants are investing in constructing core and shell properties across the country. These new facilities are expected to be fully commissioned within two to three years of the initial build-out.
AECOM, Ahluwalia Contracts, Tata Projects, DSCO Group, and Larsen & Toubro(L&T) are construction contractor builders in the India data center construction market. The country has the presence of both global and local construction contractors and engineering and architectural firms. The growth in the market will provide opportunities for local sub-contractors in construction, engineering, and architectural verticals.
The increasing number of cloud companies will benefit construction contractors, infrastructure providers, architectural and engineering firms, and others. Vendors focus on countries with lower labor and land costs while confirming that data center construction specifications are followed.
The high costs of modern security systems will increase market competitiveness, while the DCIM/BMS solutions will remain competitive in decreasing the OPEX of facilities. ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Legrand, Rittal, Rolls-Royce, and Schneider Electric are some prominent support infrastructure providers in the India data center construction market.
Market Segmentation Analysis
In the India data center construction market, the electrical infrastructure adoption is expected to grow by around 14.85% year-over-year (YOY). Regarding power infrastructure, the generators segment was the largest contributor to the market revenue by adopting DRUPS systems.
Indian data centers use both water-based and air-based cooling techniques. Facilities that depend on free-cooling techniques, such as free-cooling chillers and evaporative coolers, are expected to grow among facilities in the India data center construction market.
In data centers, general construction consists of building development plans (site preparation and core and shell development), installation and commissioning, building designing services (architectural and engineering design), and security (fire and smoke detection.
Regarding data center investment revenue, Maharashtra, Tamil Nadu, Telangana, and Uttar Pradesh dominate the India data center construction market.
There are approx. 39 data center facilities in 14 states of India are certified by the Uptime Institute, of which 31 are Tier III facilities, and eight are Tier IV facilities.
The report includes the investment in the following areas:
Facility Type
Colocation
Hyperscale
Enterprise Data Centers
Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
General Construction
Electrical Infrastructure
Uninterruptible Power Supply (UPS) Systems
Generators
Power Distribution Units
Transfer Switches & Switchgear
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructure
Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Other Cooling Units
General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
Data Center Infrastructure Management (DCIM)/Building Management Systems (BMS)
Tier Standards
Tier I & II
Tier III
Tier IV
Geography
India
Maharashtra
Tamil Nadu
Telangana
Uttar Pradesh
Other States
Major Vendors
Prominent Construction Contractors
AECOM
AHLUWALIA CONTRACTS (INDIA) LTD.
DEC Infra
DSCO Group
Emerge Engineering
Larsen & Toubro (L&T)
Prasa
Listenlights
Sterling and Wilson (Shapoorji Pallonji Group)
Turner & Townsend
Tata Projects
Vastunidhi
Prominent Support Infrastructure
ABB
Blue Box (Swegon)
Caterpillar
Climaveneta Climate Technologies (Mitsubishi Electric)
Cummins
Delta Electronics
Eaton
Kirloskar Oil Engines (KOEL)
Legrand
NetRack Enclosures
Panduit
Riello Elettronica
Rittal
Rolls-Royce
Schneider Electric
Siemens
STULZ
Vertiv
Prominent Data Center Investors
Nxtra by Airtel
Amazon Web Services (AWS)
CapitaLand
Colt Data Centre Services
CtrlS
BAM Digital Realty
Equinix
NTT Global Data Centers
Pi DATACENTERS
Reliance Jio Infocomm
ST Telemedia Global Data Centres
Sify Technologies
Web Werks
Yotta Infrastructure Solutions
New Entrants
AdaniConneX
Chindata Group (Bridge Data Centres)
Princeton Digital Group (PDG)
SpaceDC
Check the detailed table of contents of the report @ https://www.arizton.com/market-reports/india-data-center-construction-market?details=tableOfContents
Key Questioned Answered in the Report:
How big is the India data center construction market?
What is the growth rate of the India data center construction market?
What is the estimated market size in terms of area in the India data center construction market by 2028?
What factors drive the growth in the India data center construction market?
How many MW of power capacity is expected to reach the India data center construction market by 2028?
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Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
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