Chennai Data Center Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 165.68 megawatt |
| Market Volume (2029) | 451.09 megawatt |
| CAGR (2024 - 2029) | 22.18 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Chennai Data Center Market Analysis
The Chennai Data Center Market size is estimated at 165.68 megawatt in 2024, and is expected to reach 451.09 megawatt by 2029, growing at a CAGR of 22.18% during the forecast period (2024-2029).
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.
- India's coastal cities like Mumbai and Chennai are leading the pack because of their extensive wet cable environments. Here, you'll find the lowest possible global latencies. Data centers are now a preferred option since they have dependable power sources and landing sites for cable networks that offer excellent global latencies. Chennai is also a popular option for DC colocation firms since it provides an abundance of experienced IT and non-IT resources that are simple to access, along with strong manufacturing bases and lower setup costs. The city is an excellent location for data centers because of its attractive cost structure and ample land supply.
- Moreover, Chennai, an integral part of global undersea cable infrastructure, serves as an alternative data exchange hub for APAC with some natural advantages, like a large pool of available land that can be developed into state-of-the-art data center facilities. The proximity makes it faster-moving compared to other alternatives within this region, making Chennai emerge superior over time. Further, Tamil Nadu has an excellent opportunity to be at the forefront of green energy and sustainability by attracting global cloud and data center players looking for locations that offer both.
- Further, states have created packages of data center-based incentives to attract development and investments in their local regions, taking cues from development agencies globally. These can take the form of tax benefits on land or equipment and provide considerable relief for large-scale development's nine- to ten-figure construction costs. Incentives also provide a business-friendly climate for development, particularly for site acquisition.
- One of the significant challenges that data center operators confront in Delhi is the rising cost of land acquisition, which raises the initial expenditure required to set up a data center. Because most existing availability zones are in formerly industrial areas that are rapidly becoming mainstream, alternatives are limited, and land costs are rising. Furthermore, land titles in the region frequently need to be clarified. This has become a problem for data center operators.
Chennai Data Center Market Trends
Government policies would advance the Investment of Data Centre
- The demand for players to store their data in India by the national government and Reserve Bank of India is helping the data center industry. With the help of the Tamil Nadu government, Web Werks has signed a Memorandum of Understanding (MOU) to construct a 20 MW data center with 100 employees here.
- The Tamil Nadu government announced a data center policy that allows the data centers to avail of an electricity tax waiver. For five years following the start of commercial operation, there is a 100% electricity tax subsidy on power obtained from the Tamil Nadu Generation and Distribution Corporation Ltd. or generated and consumed using captive sources.
- Chennai will be the second-largest location for Web Works in India. In India, the business includes data facilities in Mumbai, Pune, and Delhi. Additionally, it has data centers abroad. The Tamil Nadu government strives to release a unique data center policy to boost the ecosystem. The state administration claims that there are six 1 Gbps-capable undersea data cables. According to TRAI, Chennai is one of India's top five service areas for broadband subscribers.
- Additionally, Chennai is crucial to the world's undersea cable system. It acts as an alternate data exchange hub for the Asia Pacific thanks to its inherent advantages, including a sizable land supply that may be turned into cutting-edge data center facilities. Chennai eventually proves to be preferable because it moves more quickly than other options in this area due to its proximity. Tamil Nadu also has a fantastic chance to lead the way in sustainable development and green energy by luring international cloud and data center businesses searching for places that provide both.
- In February 2024, STT GDC India inked an MoU with the Tamil Nadu government, projecting an investment of up to INR 1900 crores. Over the next 5 to 7 years, STT GDC India plans to establish additional data center capacity, targeting an 80 MW critical IT load, across various strategic locations in the state.
Increased Migration to Cloud & IT based Business Operations
- Cisco is increasing the number of data centers it has in India. As Indian businesses speed up migration to the cloud, Cisco invests in specialized cloud infrastructure to expand access to security services among Indian customers. Cisco has invested in a new data center in Chennai to fully realize the potential of cloud-delivered security to assist businesses in protecting devices, remote users, and distant locations.
- The new and renovated facilities will leverage industry-leading network performance to deliver agile, highly robust, high-capacity access closer to users, including big and small Indian businesses from various industries. This is essential in the hybrid workplace of today, as companies must transition from a static to a dynamic operating model, posing special cybersecurity issues. The demand for cloud data centers has dramatically expanded as a result.
- Demand for cloud services increased due to the pandemic, which required continuous data backup, and digital transformation sped up in all industries. Hyperscale data centers have seen an increase in investment due to the cloud transition. In direct proportion to the growth in data consumption and use of the cloud, the necessity for data centers has increased tremendously.
- AWS intended to create four new mini-data centers in Bengaluru, Chennai, Delhi, and Kolkata in February 2022. These local zones, built in densely populated areas, will provide cloud services for clients requiring near-zero application latency. In addition to providing server infrastructure, this data center provider provides managed databases, content delivery networks, cloud services, and other services. The platform offers its users the best uptime, security, scalability, AI, and machine learning standards.
Chennai Data Center Industry Overview
The Chennai data center market is semi consolidated. 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 April 2023, the EO of BAM Digital Realty expects 681 MW of data center capacity to be added by the end of 2024, which will double India's data center capacity to 1,318 MW. BAM Digital Realty-a JV between Digital Realty and Brookfield Infrastructure-plans to develop its first data center in India by December 2023 in Chennai, with more than 100 MW of capacity. Digital Realty has over 310 data centers globally, and the JV plans to invest USD 2 billion over the next few years, say industry sources.
In January 2022, the Bharti Airtel subsidiary Nxtra Airtel, which operated data centers, opened a new hyperscale data center park in Chennai. This was the third sizable data center for NXTRA by Airtel in Chennai. The 38 MW LEED-certified building spans over 270,000 square feet. The fact that Airtel's new data center was fully connected with the company's global submarine cable network gives hyperscalers an end-to-end secure connection solution, a significant selling point.
Chennai Data Center Market Leaders
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Sify Technologies Limited
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STT Telemedia
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Reliance industries
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NTT Data
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Nxtra Data Limited
*Disclaimer: Major Players sorted in no particular order
Chennai Data Center Market News
- June 2024 - Equinix is expanding in India with plans for a data center in Chennai and has announced its expansion into the city with a new International Business Exchange (IBX) facility, called CN1, Set on 6 acres in the SIPCOT (State Industries Promotion Corporation of Tamil Nadu Ltd) in the Siruseri area, the four-story building will offer capacity for 4,950 cabinets when fully built.
- June 2024聽-聽 In support of India鈥檚 goal of becoming a $1 trillion digital economy by 2027-2028, the world鈥檚 digital infrastructure company庐, announced its expansion into Chennai with its first International Business ExchangeTM聽(IBX庐) data center, called CN1. This facility is designed to support the needs of enterprises and hyperscalers, including AI deployments, to help businesses capitalize on the digital opportunity in India.
- February 2023: A new data center is being built in Tambaran, Chennai, according to Cyfuture, a top provider of data centers and cloud services in India. The facility will initially be able to accommodate 500 racks, with plans to grow. To complete the project, the company has acquired a sizable site of almost 1 acre! Given its strategic position, underwater cable connectivity, and presence of major corporations and IT firms, Chennai is a significant site for the data center industry in India.
Chennai Data Center Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
4.1 Smartphone Users
4.2 Data Traffic per Smartphone
4.3 Mobile Data Speed
4.4 Broadband Data Speed
4.5 Regulatory Framework
4.6 Value Chain Analysis
5. MARKET OUTLOOK
5.1 IT Load Capacity
5.2 Raised Floor Space
5.3 Number of Racks
6. MARKET SEGMENTATION
6.1 By DC Size
6.1.1 Small
6.1.2 Medium
6.1.3 Large
6.1.4 Massive
6.1.5 Mega
6.2 By Tier Type
6.2.1 Tier 1 & 2
6.2.2 Tier 3
6.2.3 Tier 4
6.3 By Absorption
6.3.1 Utilized
6.3.1.1 By Colocation Type
6.3.1.1.1 Retail
6.3.1.1.2 Wholesale
6.3.1.1.3 Hyperscale
6.3.1.2 By End-User
6.3.1.2.1 Cloud & IT
6.3.1.2.2 Telecom
6.3.1.2.3 Media & Entertainment
6.3.1.2.4 Government
6.3.1.2.5 BFSI
6.3.1.2.6 Manufacturing
6.3.1.2.7 E-Commerce
6.3.1.2.8 Other End-User
6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Sify Technologies Limited
7.1.2 STT Telemedia
7.1.3 Reliance industries
7.1.4 NTT Data
7.1.5 Nxtra Data Limited
7.1.6 Adani
7.2 Market share analysis (In terms of MW)
7.3 List of Companies
Chennai Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services, as well as store and manage the data connected with those applications and services.
The Chennai data center market is segmented by DC size (small, medium, large, massive, mega), by tier type (tier 1 and 2, Tier 3, Tier 4), by absorption (utilized, colocation type (retail, wholescale, hyperscale), end user (cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce), and non-utilized).
The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
| By DC Size | |
| Small | |
| Medium | |
| Large | |
| Massive | |
| Mega |
| By Tier Type | |
| Tier 1 & 2 | |
| Tier 3 | |
| Tier 4 |
| By Absorption | |||||||||||||||||
| |||||||||||||||||
| Non-Utilized |
Chennai Data Center Market Research Faqs
How big is the Chennai Data Center Market?
The Chennai Data Center Market size is expected to reach 165.68 megawatt in 2024 and grow at a CAGR of 22.18% to reach 451.09 megawatt by 2029.
What is the current Chennai Data Center Market size?
In 2024, the Chennai Data Center Market size is expected to reach 165.68 megawatt.
Who are the key players in Chennai Data Center Market?
Sify Technologies Limited, STT Telemedia, Reliance industries, NTT Data and Nxtra Data Limited are the major companies operating in the Chennai Data Center Market.
What years does this Chennai Data Center Market cover, and what was the market size in 2023?
In 2023, the Chennai Data Center Market size was estimated at 128.93 megawatt. The report covers the Chennai Data Center Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Chennai Data Center Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Chennai Data Center Industry Report
Statistics for the 2024 Chennai Data Center market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Chennai Data Center analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
