Data Centers in India

India – Connecting a Billion Digital Consumers

India represents one of the largest and fastest-growing digital infrastructure markets globally. For any business targeting South Asia, deploying in India is essential for delivering low-latency, high-performance services to a massive and increasingly connected population. The country’s rapidly expanding data center capacity, coupled with dense international connectivity, provides the foundation to scale operations and capture significant revenue growth.

India: At A Glance

Network & Connectivity Ecosystem

India's connectivity ecosystem is mature and highly competitive, offering exceptional options for network redundancy and performance.

Carrier Density & Carrier Neutrality: With over 32 providers operating in the country as of September 2025, businesses have extensive choice. Major data center hubs in Mumbai, Chennai, and Delhi offer rich carrier neutrality, preventing vendor lock-in and enabling cost-effective network solutions.

Direct Cloud On-Ramps: Over 11 dedicated cloud on-ramps provide direct, private access to major hyperscalers across 7 cloud regions. Available providers include AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud, ensuring secure, high-throughput connections for hybrid cloud architectures.

Internet Exchange Points (IXPs): The National Internet Exchange of India (NIXI) operates multiple exchange points across the country. These IXPs are critical for keeping domestic traffic within India, significantly reducing latency and improving user experience for the local population.

Bare Metal: Bare metal server options are readily available from multiple providers. Companies like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Average Cost Of Power: Industrial power rates average around $0.07/kWh as of 2019. This competitive pricing is a key advantage for companies running power-intensive applications like AI training or large-scale data analytics, directly lowering total cost of ownership.

Power Grid Reliability: In primary data center markets like Mumbai, Chennai, and Bengaluru, the power grid is well-engineered to support mission-critical facilities. Colocation providers offer multi-substation support and robust N+1 or 2N UPS configurations to guarantee uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located in major metropolitan areas, providing low-latency connectivity to India's primary economic hubs. Facilities in Mumbai serve the financial sector, while those in Bengaluru and Hyderabad are close to the nation's technology and software development centers.

Regional Market Reach: An infrastructure footprint in India provides a strategic gateway to the entire South Asian Association for Regional Cooperation (SAARC) region. Its robust international cable systems make it an effective hub for serving users in neighboring countries like Bangladesh, Nepal, and Sri Lanka.

Tax Advantage For Data Centers: India does not currently offer specific national tax incentives for data center construction or operation. The primary financial advantage comes from the country's competitive operational costs and access to a massive, addressable market.

Natural Disaster Risk

India has a High natural disaster risk profile, with an INFORM Risk score of 5.5 out of 10 as of September 2025. This assessment reflects significant exposure to multiple hazards, making site selection and infrastructure resilience critical considerations.

The primary natural hazards to account for in risk management and disaster recovery planning include:

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

While certain risks like flooding and cyclones are concentrated in coastal and riverine areas, seismic risk is a factor in several regions. Leading data center operators mitigate these risks with hardened building designs and strategic site placements.