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Data Centers in New Delhi

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New Delhi – Connecting South Asia's Largest Market

Executive Summary

New Delhi is a primary digital gateway for enterprises targeting India's massive domestic market. With excellent connectivity and a growing number of data centers, the region is essential for deploying applications that require low latency for millions of users in Northern India. This strategic presence directly supports improved service delivery and regional revenue growth.

New Delhi: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent carrier diversity and a well-developed network fabric support reliable, high-speed connectivity.
Direct Cloud On-RampsOver 1 – as of September 2025AWS is available locally, enabling low-latency hybrid cloud and multi-cloud architectures.
Power Cost≈$0.07/kWh – as of 2019Globally competitive pricing helps manage operational expenses for high-density deployments.
Disaster RiskHigh (5.5/10) – as of September 2025Site selection and infrastructure must account for significant flood and seismic risks.
Tax IncentivesNo – as of September 2025No specific data center tax incentives are currently offered in the region.
Sales Tax18% GST – as of September 2025India's standard Goods and Services Tax rate applies to equipment and services.

Network & Connectivity Ecosystem

New Delhi has a dense and competitive connectivity landscape, making it a critical hub for Northern India. The market provides strong options for interconnection, cloud access, and network services.

Carrier Density & Carrier Neutrality: The market features 8 national and international carriers as of September 2025. Multiple carrier-neutral facilities provide extensive choice and commercial leverage for network procurement.

Direct Cloud On-Ramps: Direct cloud access is available with over 1 on-ramp connecting to 1 cloud region. This enables high-performance, secure hybrid cloud deployments. Local cloud access is available for AWS as of September 2025.

Internet Exchange Points (IXPs): The National Internet Exchange of India (NIXI) is the primary IXP in the region. NIXI facilitates efficient local traffic exchange, reducing latency and transit costs for connected networks.

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

Power Analysis

Average Cost Of Power: Industrial power costs in New Delhi are competitive, averaging approximately $0.07/kWh as of 2019. This attractive pricing structure makes it financially viable to run power-intensive computing infrastructure.

Power Grid Reliability: While the regional power grid can experience fluctuations, data centers are concentrated in well-supported industrial areas like Noida and Gurugram. All enterprise-grade facilities provide extensive N+1 or 2N UPS and generator backup to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located in and around the National Capital Region (NCR), particularly in Noida and Gurugram. These areas are major hubs for IT services, finance, and multinational corporations, allowing for minimal latency to key business operations.

Regional Market Reach: A deployment in New Delhi provides low-latency access to one of the largest metropolitan populations in the world. It also serves as an effective digital hub for all of Northern India, reaching hundreds of millions of end-users.

Tax Advantage For Data Centers: The region does not offer specific tax incentives for data center development or operation. Businesses should plan based on the standard tax framework, as the market's strategic importance is the primary financial justification.

Natural Disaster Risk

New Delhi has a High-risk profile for natural disasters, with an INFORM Risk score of 5.5 out of 10 as of September 2025. This assessment reflects significant environmental and geological hazards that require careful facility planning and disaster recovery strategies.

The primary natural hazards driving this risk include:

  • River Flood: Risk score of 9.2
  • Earthquake: Risk score of 8.3
  • Tropical Cyclone: Risk score of 7.7
  • Drought: Risk score of 6.4
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