Data Centers in India

India – Digital Hub for a Billion People

India represents one of the largest and fastest-growing digital markets globally. Its strategic importance lies in providing low-latency infrastructure to serve over a billion domestic users and the broader South Asian region. For companies targeting this massive consumer and business base, deploying infrastructure within India is essential for performance, data sovereignty, and competitive advantage.

India: At A Glance

Network & Connectivity Ecosystem

With 166 data centers and growing, India's interconnection landscape is mature and highly competitive. The market provides excellent options for building resilient, high-performance network architectures.

Carrier Density & Carrier Neutrality The market features over 32 network service providers as of September 2025. Carrier-neutral facilities in major cities like Mumbai, Chennai, Delhi, and Bengaluru offer a wide selection of domestic and international connectivity partners, ensuring competitive pricing and redundancy.

Direct Cloud On-Ramps With over 11 dedicated cloud on-ramps, businesses can establish secure, private connections to major hyperscalers. Direct access is available to 7 cloud regions from providers including AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud, minimizing latency for hybrid cloud workloads.

Internet Exchange Points (IXPs) The National Internet Exchange of India (NIXI) operates multiple exchange points across the country, improving traffic routing and reducing latency for domestic users. Major data centers offer direct access to NIXI and other private peering exchanges, which is critical for content delivery and application performance.

Bare Metal Bare metal server capacity is readily available from multiple providers. This allows businesses to deploy dedicated, high-performance compute without the overhead of managing their own hardware. Providers like Hivelocity and phoenixNAP offer solutions in the region.

Power Analysis

Average Cost Of Power Industrial power pricing is competitive for the region, averaging approximately $0.07/kWh as of 2019. This cost structure makes India an attractive location for deploying power-intensive applications and high-density compute clusters.

Power Grid Reliability The power grid in primary data center markets like Mumbai and Chennai is well-engineered, with significant investment in redundant substations and distribution paths to support mission-critical operations. Major operators provide multi-utility feeds and robust on-site generation to deliver high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are strategically located near India's major economic hubs. Facilities in Mumbai serve the financial services industry, while those in Bengaluru and Hyderabad cater to the massive IT and software development sectors. Proximity to these districts ensures minimal latency for critical business applications.

Regional Market Reach An infrastructure deployment in India serves as a strategic anchor for the entire South Asian Association for Regional Cooperation (SAARC) region. It provides an effective platform for delivering services to nearly two billion people across India, Pakistan, Bangladesh, Sri Lanka, and neighboring countries.

Tax Advantage For Data Centers While there are no direct national tax incentives for data centers, the primary financial advantage is direct access to one of the world's largest and fastest-growing digital economies. Locating infrastructure in-country avoids cross-border data transfer complexities and allows businesses to compete effectively for a vast and expanding customer base.

Natural Disaster Risk

India has a High natural disaster risk profile, with a national score of 5.5 out of 10 as of September 2025. However, risk exposure varies dramatically by region, and site-specific due diligence is essential.

The most significant national-level risks are driven by high exposure scores for:

• River Flood: 9.2/10
• Earthquake: 8.3/10
• Tsunami: 7.8/10
• Coastal Flood: 7.8/10
• Tropical Cyclone: 7.7/10

Data center operators in high-risk zones, particularly coastal cities like Mumbai and Chennai, implement specific engineering and operational controls to mitigate these threats. Inland locations like Bengaluru or Hyderabad offer lower exposure to cyclonic and flood-related events.