Colocation Data Center Market in India
India’s colocation data center market is in a multi‑year build‑out phase, moving from ~1.3 GW operational capacity today to between roughly 4–5 GW (or more) by 2030, driven by cloud, AI, and data‑localization demand. For investors and operators, that means a long runway of capex, infra‑like cashflows, and intense competition among platforms like CtrlS, Yotta, STT GDC India, Nxtra, Sify, NTT, Web Werks–Iron Mountain, AdaniConneX, Reliance (Jio), and Equinix India / GPX for hyperscale and enterprise workloads.
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Colocation Data Center Market size and growth
As of H1 2025, India had about 1.0–1.3 GW of operational data center capacity (IT load) across 120–130 facilities, with Mumbai alone contributing almost half and Chennai and Delhi NCR together adding another large chunk. Upcoming supply to 2030 is in the 2.9–3.7 GW range, implying a total of roughly 4–5 GW, with some bullish scenarios going higher as AI workloads accelerate.
The colocation segment itself was valued at around USD 1.2 billion in 2023 and is expected to reach roughly USD 4.5 billion by 2029, implying a CAGR of about 24–25% for colocation data center revenue; broader India data center revenues (including cloud/managed) are also growing at high teens to mid 20s rates.
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What drives Colocation Data Center Market in India
Key demand triggers are: rapid cloud adoption, AI/ML and GPU heavy workloads, digital payments and e commerce, BFSI digitization, and regulatory pushes like RBI data localization rules and the DPDP Act that encourage local storage. Hyperscalers (AWS, Azure, GCP, OCI) and large SaaS/OTT platforms are driving wholesale colo demand, while BFSI, telecom, IT services, and government remain big in retail colo and managed hosting.
Wholesale colocation continues to dominate capacity and market share, but retail colocation and interconnection rich hubs (such as Equinix style campuses) command higher yields and deeper ecosystems, which matters for players like Equinix India / GPX and Web Werks–Iron Mountain.
Colocation Data Center Capacity, geography, and supply pipeline
City wise, Mumbai/Navi Mumbai is the anchor, accounting for around 40–50% of existing and upcoming supply because of subsea cables and BFSI concentration, followed by emerging hubs like Hyderabad, Chennai, and Delhi NCR. Savills and Cushman & Wakefield data indicate that absorption has been running ahead of new supply in recent periods, with H1 2025 seeing roughly 160+ MW of new capacity versus over 200 MW of absorption, keeping vacancy relatively tight in prime markets.
To 2030, Mumbai and Hyderabad alone are expected to add 1,000–1,200 MW each, with Chennai, Delhi NCR, Pune, and a few tier 2 cities rounding out another 1,000–1,500 MW; this is where your 10 platforms are concentrating most of their new campuses.
Capex intensity and returns Colocation Data Center in India
Typical colocation build costs in India are around INR 400–430 million per MW (roughly USD 5–5.5 million/MW), which is among the lowest globally, driven by lower land and construction costs and improving policy support. Various reports estimate total DC capex of USD 20–30 billion between now and 2030, with significant flows from global funds (Blackstone, Brookfield, ADIA, etc.), and operators generally targeting 65–70% debt funding with 10–12-year tenors.
At stabilized occupancy, EBITDA margins for DC operators can reach 40–50%, as utilities are largely pass through and contracts are long term; this is why many platforms (including some of your 10 names) are being built explicitly with eventual REIT/InvIT or IPO monetization in mind.
Leaders by Scale and Execution in Colocation Data Center in India
Among the 10 platforms, STT GDC India and CtrlS Datacenters emerge as current capacity frontrunners with 390–400 MW and 250+ MW footprints, respectively, backed by diversified metro coverage and aggressive AI-ready pipelines. AdaniConneX and Yotta Infrastructure represent the most ambitious hyperscale bets, targeting 1 GW+ through integrated infra/energy ecosystems and large campuses in Navi Mumbai, Noida, and Chennai.
| Company | Operational MW (India) | Pipeline MW (Next 5 Yrs) | Key Cities | Capex Intensity |
| CtrlS | 250+ | 350–400 | Mumbai, Hyderabad, Chennai | USD 2 Bn / 6 yrs ctrls+1 |
| Yotta | 50–100 | 300+ | Navi Mumbai, Greater Noida | USD 4.7 Bn (Noida alone) developingtelecoms+1 |
| STT GDC India | 390–400 | 50–100+ | 10 cities (Mumbai, Pune focus) | INR 5,000 Cr Maharashtra linkedin |
| Nxtra (Airtel) | 200 | 200+ | Hyderabad (200 MW), 65+ cities | INR 5,000 Cr / 3 yrs telecomtalk+1 |
| AdaniConneX | Early phase | 450+ (to 1 GW by 2032) | Chennai, Noida, Hyderabad | USD 213 Mn financing w+1 |
| Reliance (Jio) | Limited disclosure | GW-scale Jamnagar AI DC | Chennai (JV), Gujarat | JV-backed datacenterdynamics |
| Sify Infinit Spaces | ~100 (est.) | 500+ (AI focus) | Noida, Mumbai, Chennai | USD 5 Bn total datacenterdynamics |
| Web Werks–Iron Mountain | 15–20 | 150–200 | Mumbai, Pune, Chennai | Global DC budget ironmountain+1 |
| Equinix India/GPX | ~10–15 (cabinet equiv.) | Mumbai expansion | Mumbai | Global capex equinix |
| NTT GDC India | ~100 (est. from prior) | Multi-city scaling | Mumbai, Chennai, Delhi-NCR | Global funding cushmanwakefield |
Strategic Differentiation and Risks in Colocation Data Center in India
Telco-backed platforms (Nxtra, Reliance/Jio) leverage nationwide edge networks for hybrid workloads, while pure hyperscalers (AdaniConneX, Yotta) prioritize GW-scale campuses with renewable power edges. Interconnection leaders (Equinix, Web Werks–Iron Mountain) command premium yields from ecosystems over raw MW.
Key risks across all: power/land constraints in Mumbai/Chennai, hyperscaler pricing cycles, and capex funding amid rising rates—though REIT/InvIT paths (Sify IPO, CtrlS potential) offer de-risking avenues.
| Company | Wholesale/Retail Tilt | Hyperscaler Exposure | AI/HPC Readiness | Ownership Model |
| CtrlS | Wholesale-heavy | High | High (edge + core) | Private ctrls |
| Yotta | Hyperscale | Very High | Sovereign AI cloud | Private (seeking USD 500M) datacenterdynamics |
| STT GDC | Balanced | High | Liquid-cooled campuses | Global (ST Telemedia) developingtelecoms |
| Nxtra | Core + edge | Medium-High | AI operations platform | Telco subsidiary telecomtalk |
| AdaniConneX | Hyperscale | Very High | Green hyperscale | Adani/EdgeConneX JV adaniconnex |
| Reliance | Integrated + JV colo | High (own + neutral) | GW AI DC | Conglomerate/JV datacenterdynamics |
| Sify | Full-stack ICT | Medium | 100 kW/rack AI | Listed (DC IPO planned) datacenterdynamics |
| Web Werks–IM | Retail/enterprise | Medium | Enterprise focus | Global JV ironmountain |
| Equinix | Interconnect/retail | Medium | Ecosystem hub | Global REIT equinix |
| NTT | Wholesale | High | Global enterprise | Global corp cushmanwakefield |
Watchpoints on Colocation Data Center in India
- Supply-demand balance: 2.9–3.7 GW pipeline vs. absorption keeps prime markets tight, but Mumbai oversupply risks could cap pricing—watch H1-2026 utilization data.
- AI premium realization: Platforms delivering 100 kW+ racks and liquid cooling (STT, CtrlS, Sify, Yotta) can lift yields 20–30%, but GPU tenancy ramp is critical.
- Capital events: Sify’s DC IPO, CtrlS strategic sale, and REIT conversions will test DC multiples; PE inflows remain strong for JV platforms like AdaniConneX.
- Power sustainability: Solar/wind PPAs (CtrlS 125 MW farm, Adani green claims) become table stakes as hyperscalers demand net-zero compliance.
For investors, CtrlS, STT, and Yotta offer the clearest scale + execution stories today; for operators benchmarking peers, Nxtra and AdaniConneX signal where telco/infra convergence will challenge pure-plays next.