Data Centers in India

India – Powering Asia's Digital Transformation

India is one of the world's largest and fastest-growing data center markets, driven by massive data consumption and a rapidly digitizing economy. Its strategic location and extensive fiber optic networks offer low-latency connectivity for businesses targeting South Asia and beyond. Deploying infrastructure here connects you directly to a billion potential users.

India: At A Glance

Network & Connectivity Ecosystem

India's digital infrastructure is expanding rapidly, offering a dense and competitive environment for colocation and interconnection.

Carrier Density & Carrier Neutrality: With over 32 providers, the Indian market offers robust carrier diversity, as of September 2025. Major metropolitan areas like Mumbai, Chennai, and Delhi feature numerous carrier-neutral facilities, ensuring competitive pricing and network resilience.

Direct Cloud On-Ramps: Over 11 dedicated cloud on-ramps provide direct, low-latency access to 7 cloud regions across the country. Major hyperscalers present include:

• AWS
• Google Cloud (GCP)
• Microsoft Azure
• IBM Cloud
• Oracle Cloud

Internet Exchange Points (IXPs): The National Internet Exchange of India (NIXI) is the primary IXP, with nodes in major cities. Peering through NIXI significantly improves traffic routing efficiency and reduces latency for domestic users.

Bare Metal: Bare metal server options are widely available for workloads requiring dedicated physical resources. Providers like Hivelocity and phoenixNAP offer deployment options in key Indian markets.

Power Analysis

Average Cost Of Power: Industrial electricity costs are approximately $0.07/kWh, as of 2019. This competitive pricing is a significant advantage for organizations running power-intensive applications, helping to manage total cost of ownership effectively.

Power Grid Reliability: The power grid in major data center hubs like Mumbai and Chennai is well-engineered, with providers offering multi-substation support and extensive backup generation. Uptime is reliable, meeting the standards for mission-critical enterprise operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located near major economic hubs such as Mumbai's Bandra Kurla Complex (BKC), the financial district of Chennai, and the IT corridors of Bengaluru and Hyderabad. This proximity provides low-latency connectivity to financial services, technology companies, and enterprise headquarters.

Regional Market Reach: India serves as a digital gateway to all of South Asia. Colocating in India offers excellent connectivity to neighboring countries, including Nepal, Bangladesh, Sri Lanka, and Bhutan, reaching a combined population of nearly two billion people.

Tax Advantage For Data Centers: While direct tax incentives for data centers are not offered at the national level, the business environment is favorable. The Goods and Services Tax (GST) system simplifies indirect taxation, creating a more predictable financial landscape for foreign and domestic investment.

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. The score reflects the country's large size and diverse geography, with risks varying significantly by region.

Key risks include:

• River Flood: Score of 9.2
• Earthquake: Score of 8.3
• Tsunami: Score of 7.8
• Tropical Cyclone: Score of 7.7
• Coastal Flood: Score of 7.8

While these national scores are high, major data center markets like Mumbai and Chennai have well-established mitigation strategies. Facilities are built to high seismic and flood-resistant standards to ensure operational continuity.