Data Centers in India

India – Scalable Infrastructure for a Digital Giant

India is the primary engine for enterprises scaling to reach the largest digital population on Earth. The massive infrastructure footprint and high carrier density provide the scale needed to protect revenue and reduce latency for global operations.

India: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: India features a vast connectivity landscape with over 32 providers operating nationwide as of September 2025. The market supports carrier–neutral environments across roughly 166 facilities in seven key regions, ensuring redundant routing and diverse pathing for enterprise traffic.

Direct Cloud On–Ramps: Over 11 direct cloud on–ramps exist as of September 2025, enabling access to seven cloud regions. Enterprises can leverage dedicated high–speed links to AWS, Google Cloud (GCP), Microsoft Azure, IBM Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): Primary exchanges such as DE–CIX India and NIXI facilitate efficient domestic peering, which significantly lowers the cost of local traffic. Peering is centrally managed in hubs like Mumbai and Chennai, which serve as the primary gateways for international data.

Bare Metal: High performance compute requirements are well served through providers such as Hivelocity. These options allow businesses to deploy dedicated hardware with cloud flexibility to handle data intensive workloads without the overhead of virtualization.

Power Analysis

Average Cost Of Power: Industrial electricity in India is priced at approximately $0.07/kWh as of September 2025. This pricing structure offers a predictable cost model for large–scale deployments compared to many developed Western markets. The grid mix includes roughly 75% fossil fuels, with renewables and hydro accounting for nearly 23%.

Power Grid Reliability: Major data center corridors in cities like Mumbai and Bengaluru benefit from well–engineered grids and multi–substation support. While the national grid continues to modernize, Tier III and IV facilities utilize significant onsite redundancy to ensure constant uptime during peak demand.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically placed near financial hubs in Mumbai, technology corridors in Bengaluru, and government centers in Delhi. This placement ensures minimal latency for high–frequency trading and corporate IT services.

Regional Market Reach: India is the central gateway for the entire South Asian market, serving a massive population with increasing mobile and internet penetration. Its geographic position also makes it a viable backup or edge location for Southeast Asian operations.

Tax Advantage For Data Centers: The standardized 18% GST simplifies tax compliance across state borders by replacing a previously fragmented tax system. This uniformity helps businesses manage multi–regional deployments with greater financial clarity and less administrative friction.

Natural Disaster Risk

India presents a High risk profile with an INFORM risk score of 5.5 as of September 2025. Infrastructure must account for significant environmental exposures, particularly in low–lying coastal cities and northern seismic zones.

• River Flood (9.2): This represents the most significant natural threat, particularly during monsoon seasons.
• Earthquake (8.3): High seismic risk exists across the northern belt and parts of the western coast.
• Tsunami (7.8): A regional risk for coastal facilities in the south and east.
• Coastal Flood (7.8): Material risk for major port cities requiring specific site–elevation strategies.
• Tropical Cyclone (7.7): Seasonal storms frequently impact the eastern seaboard and Bay of Bengal.
• Drought (6.4): Water scarcity can impact cooling systems during extreme heat periods.