The India data center server market size reached USD 2.46 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 4.76 Billion by 2033, exhibiting a growth rate (CAGR) of 7.03% during 2025-2033. The market for data center servers in India is expanding due to increasing AI-driven infrastructure, rising cloud adoption, and sustainability initiatives. Investments in AI-optimized and green data centers are driving demand for high-performance, energy-efficient servers, supporting digital transformation, and enhancing India’s position as a key data center hub.
Report Attribute
|
Key Statistics
|
---|---|
Base Year
|
2024 |
Forecast Years
|
2025-2033
|
Historical Years
|
2019-2024
|
Market Size in 2024 | USD 2.46 Billion |
Market Forecast in 2033 | USD 4.76 Billion |
Market Growth Rate 2025-2033 | 7.03% |
Expansion of AI-Optimized Data Centers
India's data center server market is growing at a high rate due to the growing demand for AI-based infrastructure. Additionally, there is a growing demand for high-performance servers, with companies implementing AI, machine learning, and cloud computing at a faster rate. Data centers now need to host big-scale AI workloads, demanding sophisticated computing power, efficient cooling systems, and high-speed data processing capabilities. Further, this transition is spawning increased investment in AI-optimized data centers, opening up new opportunities for server makers and tech providers. For example, in January 2025, Reliance announced plans to build the world's largest data center in Gujarat, incorporating Nvidia AI semiconductors. This facility aims to create an AI ecosystem by supporting India's growing AI applications and supercomputing needs. Furthermore, Telangana attracted three big data center investments aimed at AI and cloud-based operations. The investments confirm the transition towards AI-driven infrastructure, underlining the need for high-performance servers that can process huge data and intricate calculations. With AI use growing across industries, India's data center environment is transforming to meet greater processing rates and reduced latency. Along with this, firms are making investments in AI-dedicated server designs, which are optimized for deep learning, natural language processing, and real-time analytics. This growth is anticipated to fuel digital transformation even more, making India a significant participant in the global AI-based data center market.
Rising Investments in Green Data Infrastructure
The growing emphasis on sustainability is reshaping India's data center server market. With increasing concerns over energy consumption, carbon emissions, and regulatory compliance, data centers are transitioning toward green infrastructure. Energy-efficient servers, liquid cooling technologies, and renewable power integration are becoming essential for modern data centers, ensuring long-term cost savings and environmental benefits. The rising focus on sustainability is driving demand for next-generation data center servers that balance performance with energy efficiency. In October 2024, Maharashtra approved the development of three Green Integrated Data Center Parks in Mumbai and Navi Mumbai, attracting INR 1.6 Trillion in investments. Each park will have a 500MW capacity and operate entirely on renewable energy. This initiative underscores the industry's move toward green data centers, ensuring reduced power consumption while maintaining high computational performance. With growing government incentives and corporate sustainability goals, data center operators are increasingly investing in eco-friendly server solutions. Energy-efficient processors, optimized workload distribution, and AI-driven power management systems are gaining prominence. These developments align with India's commitment to achieving carbon neutrality and fostering a more sustainable digital infrastructure. As green data centers expand, the demand for servers designed for lower power consumption and optimized resource utilization will continue to grow, transforming India's data center landscape.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on product and application.
Product Insights:
The report has provided a detailed breakup and analysis of the market based on the product. This includes rack servers, blade servers, micro servers, and tower servers.
Application Insights:
The report has provided a detailed breakup and analysis of the market based on the application. This includes industrial servers and commercial servers.
Region Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
---|---|
Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
|
Products Covered | Rack Servers, Blade Servers, Micro Servers, Tower Servers |
Applications Covered | Industrial Servers, Commercial Servers |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: