Hyderabad Data Center - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2018 - 2030

The Hyderabad Data Center Market size in terms of installed base is expected to grow from 54.53 megawatt in 2024 to 430.99 megawatt by 2030, at a CAGR of 20.12% during the forecast period (2024-2030).

A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.

Key Highlights

• Due to the rise in online demand and remote working, organizations are moving more quickly to the cloud and adopting more adaptable digital workspaces. Cloud services are based on data centers, even though the cloud is the foundation of digital transformation. As a result, the migration of companies to the cloud is fueling the expansion of the Indian data center market.
• The digital transformation of many industries and the public sector has changed significantly due to the increased adoption and practical applications of cutting-edge technologies like artificial intelligence, machine learning, big data and analytics, the Internet of Things, and blockchain, among others.
• For instance, CapitaLand declared the opening of its hyperscale data center in Hyderabad in June 2022. The location is a well-established corridor for IT-ITES enterprises and data centers and is within the commercial core of International Tech Park Hyderabad, Madhapur. With a total facility load of 40MW and a dedicated GIS substation on-site, the state-of-the-art data center facility will showcase cutting-edge technologies in cooling and security. It will offer advanced solutions in today's digital ecosystem.
• Additionally, the cost of the data center infrastructure is higher for the purchase and installation of electrical equipment, such as transformers, patch panels, UPSes, auto transfer switches, and generators, as well as mechanical equipment, such as computer room air conditioning units, refrigerant loops, condenser plants or chillers, etc. This may restrict Hyderabad's data center market's ability to expand.
• Lastly, the COVID-19 pandemic impacted the national and regional service providers of data centers. Further, because of the extensive travel prohibition, many businesses turned to remote work, which sharply increased data traffic and strained the data center's ability to avoid outages. The insatiable demand for data center capacity is set to continue in the post-COVID-19 exponential growth trajectory increases as businesses accelerate their digital transformation programs to remain viable and domestic customers begin living even more of their lives online.

Hyderabad Data Center Market Trends

Rising Cloud-based Business Operations Migration

• Hyderabad-based software businesses have recently reduced their computer costs by 25% to 50%. These start-ups receive cloud services from large international corporations, including Microsoft Azure, Amazon Web Services (AWS), IBM Cloud, and Google Cloud Platform. To give customers more alternatives for running workloads with even better resilience and availability, securely storing data, and providing end users with even reduced latency, AWS recently announced the creation of India's second AWS Asia-Pacific (Hyderabad) Region.
• In November 2022, AWS India announced a planned investment of more than USD 438.37 million; this is expected to support an average of more than 48,000 full-time jobs yearly by 2030. By 2030, it is anticipated that the development and operation of the AWS (Hyderabad) Region will boost India's GDP by about USD 768.63 million.
• With digital transformation accelerating across businesses and the internet being a lifeline for individuals for work and enjoyment, the epidemic has increased demand for cloud services in Hyderabad. Investments in hyper-scale data centers have surged as a result of this transition to the cloud, with According to rating agency ICRA, India's data center capacity is predicted to rise by a factor of six over the next six years, to 4,900-5,000 MW, given the existing investment pipeline of approx USD 18.13 billion.
• In April 2022, Microsoft declared that its newest data center area would be located in Hyderabad, Telangana. This tactical investment is consistent with Microsoft's dedication to helping customers succeed in a cloud- and AI-enabled digital economy. The Hyderabad data center will be a recent addition to this network. It will enable data protection for enterprises, start-ups, developers, educational institutions, and governmental organizations across the entire Microsoft portfolio, including the cloud, data solutions, artificial intelligence (AI), productivity tools, and customer relationship management (CRM).
• Hyderabad data center operators have invested in technology to offer their clients the best services possible. Scalable cloud services enable businesses to compete successfully without worrying about the declining returns brought on by growth. The data center supplier ensures enough resources are available to handle a spike in resource demand. Those services' scalability choices drive Hyderabad's need for data centers.

Government policies would advance the Investment of Data Centre

• The Government of Telangana pledges to boost its use of cutting-edge tools like AI, ML, big data, and blockchain to give residents a quick, dependable, and safe e-governance experience and develop an IT and emerging technologies department with a dedicated budget. The government guarantees that all residents will have access to 5G internet with a full rollout to accomplish state-wide digitization.
• The players have chosen facility development as their primary tactic to accommodate the country's expanding consumer demand. For instance, Indian telco Bharti Airtel outlined an extensive growth plan for its data center subsidiary Nxtra in October 2021. By 2025, the capacity of Nxtra's data centers will have tripled to more than 400MW, according to the business. To expand its data centers around the country, Airtel plans to spend USD 604.4 million. Significant metro locations will add new data center infrastructure.
• In January 2022, the United States tech giant Microsoft and the Telangana government finalized a deal to set up an USD 1.81 billion data center in Hyderabad. A 50-acre land near the city is believed to have been finalized, and the project is expected to create around 300 jobs. Furthermore, various state governments are also supporting Colocation Data Centers to set up their facilities and give their lands for the infrastructure. These factors significantly contribute to the market growth rate during the forecast period.
• The first state in India to introduce a data center policy is Telangana. Given the substantial fuel consumption of backup power sources such as generator sets, the government must offer fuel to qualified businesses in the Data centers Campus at a price below market rates. The operating guideline will provide more information on this. Given the data center's sector-specific design and construction characteristics, the Telangana government shall include data center-related infrastructure under the building clearance rules. Data centers would be classified as a unique infrastructure category.

Hyderabad Data Center Industry Overview

The Hyderabad data center market is fragmented in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some players include Reliance Industries, Nextra Data Limited, CtrlS, STT Telemedia, and Sify Technologies.

• In March 2023, to build a hyperscale data center in Hyderabad, Bharti Airtel would invest USD 241 Million. The facility will be a hyperscale data center with a first-phase IT load capacity of 60 megawatts (MW). The most recent cooling and security technology will be used.
• In March 2022, Microsoft declared that Hyderabad, Telangana, would be the location of its most recent data center area. This tactical investment is consistent with Microsoft's dedication to helping customers succeed in a cloud- and AI-enabled digital economy. Microsoft's data centers are now spread across three locations in India: Pune, Mumbai, and Chennai. The Hyderabad data center will be a recent addition to this network. It will enable data protection for enterprises, start-ups, developers, educational institutions, and governmental organizations across the entire Microsoft portfolio, including the cloud, data solutions, artificial intelligence (AI), productivity tools, and customer relationship management (CRM).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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