India Data Center Power Market Size, Share, Trends and Forecast by Solution Type, Service Type, Size, Vertical, and Region, 2026-2034

India Data Center Power Market Overview:

The India data center power market size reached USD 836.2 Million in 2025. The market is projected to reach USD 1,280.42 Million by 2034, exhibiting a growth rate (CAGR) of 4.85% during 2026-2034. The market is driven by government policy support and infrastructure status designation that has enabled easier access to funding and accelerated development. Additionally, rising demand for renewable energy integration driven by sustainability mandates and exponential capacity growth is supporting market expansion. Furthermore, AI-driven infrastructure modernization requiring higher power density capabilities is expanding the India data center power market share.

India Data Center Power Market Trends:

Government Policy Support and Infrastructure Status Driving Market Expansion

The Indian government has implemented comprehensive policy frameworks to position the country as a global data center hub, fundamentally transforming the market landscape for power infrastructure providers. The designation of data centers as infrastructure in the 2022-23 budget has unlocked institutional financing channels previously unavailable to the sector, enabling operators to secure long-term capital at favorable rates for power system deployments. State-level policies across Maharashtra, Tamil Nadu, Karnataka, and Telangana offer fiscal incentives including reduced power tariffs, land subsidies, and single-window clearance mechanisms that accelerate project timelines. The IndiaAI Mission, backed by Rs 103 billion in government funding, explicitly targets development of AI-ready data centers with advanced GPU clusters and high-performance computing systems, creating immediate demand for robust uninterruptible power supplies, intelligent power distribution units, and backup generation capacity. Data localization regulations stemming from the Digital Personal Data Protection Act mandate that critical information remain within Indian borders, compelling multinational corporations to establish local data center operations with enterprise-grade power infrastructure. In January 2025, Hyderabad emerged as a focal point when Telangana secured investments worth INR 24,500 Crores to develop AI-optimized data centers totaling 550MW capacity, directly translating into substantial orders for UPS systems, switchgear, and generator sets. These coordinated policy interventions have reduced regulatory friction, shortened approval cycles from years to months, and created predictable operating environments that encourage both domestic and international investment in power infrastructure components essential for mission-critical data center operations across India.

Rising Demand for Renewable Energy Integration and Sustainability Mandates

The exponential growth trajectory of India's data center capacity from 1.4 gigawatts in 2024 to a projected 9 gigawatts by 2030 is fundamentally reshaping power procurement strategies, with renewable energy emerging as a central pillar of infrastructure planning. This dramatic expansion will increase data center electricity consumption from less than 1% to approximately 3% of India's total power demand by 2030, creating unprecedented pressure on grid reliability while simultaneously accelerating corporate commitments to sustainability targets aligned with global Environmental, Social, and Governance frameworks. State-level renewable energy mandates, particularly in Maharashtra and Tamil Nadu, now require up to 100% renewable sourcing for new campus developments, compelling operators to implement hybrid solar-plus-storage architectures that integrate battery energy storage systems with traditional backup generators to ensure continuous availability. The economic case for renewables has strengthened considerably, with firm renewable power tariffs reaching historic lows of Rs 4.98-4.99 per unit, undercutting natural gas-based generation at Rs 5.4 per unit and making clean energy the default choice for power-intensive facilities. In 2024, telecommunications provider Bharti Airtel's data center subsidiary Nxtra exemplified this transition by committing to procure 140 GWh of renewable energy annually across facilities in Tamil Nadu, Uttar Pradesh, and Odisha through partnerships with AmpIn Energy and Amplus Energy that established captive solar and wind projects totaling 72.3 MWdc under 25-year power purchase agreements. Leading operators are pursuing backward integration strategies, directly investing in renewable generation projects to secure long-term price stability and meet corporate carbon neutrality pledges, while simultaneously deploying advanced energy management software that optimizes load distribution between grid power, on-site solar, battery storage, and diesel generators. This comprehensive approach to renewable integration is transforming power infrastructure specifications, driving adoption of intelligent PDUs with real-time monitoring capabilities, modular UPS systems compatible with intermittent renewable sources, and sophisticated energy storage solutions that bridge supply-demand gaps inherent in solar and wind generation, collectively advancing the India data center power market growth.

AI-Driven Infrastructure Modernization and Power Density Requirements

The artificial intelligence revolution is fundamentally reconfiguring power infrastructure requirements within Indian data centers, as AI workloads demand dramatically higher rack densities that exceed traditional enterprise IT specifications by factors of three to four. Average rack power density is escalating from the current 8-10 kW per rack baseline to anticipated levels of 30 kW per rack specifically for AI-optimized facilities, with some hyperscale deployments targeting individual rack loads exceeding 40 kW to accommodate dense GPU server configurations running large language models and machine learning training operations. This power intensity transformation necessitates comprehensive infrastructure upgrades spanning the entire electrical distribution chain, from utility interconnections capable of delivering multi-megawatt capacity down to intelligent power distribution units that provide circuit-level monitoring and dynamic load balancing across high-amperage busways. Cooling infrastructure, intrinsically linked to power systems, must evolve in parallel, with operators exploring liquid immersion cooling technologies that offer superior thermal management for heat-dense AI processors while simultaneously reducing overall energy consumption compared to traditional air-cooling approaches that require substantial fan power and CRAC unit operation. In December 2024, Vertiv addressed these emerging requirements by launching the PowerUPS 9000, an energy-efficient uninterruptible power supply system engineered specifically for high-density environments, featuring compact design that saves valuable data center floor space while delivering power capacities from 250 to 1250 kW per unit in both CE and UL-certified models. The shift toward AI workloads is also driving adoption of modular power infrastructure that allows operators to scale capacity incrementally as GPU deployment expands, avoiding over-provisioning that ties up capital in underutilized assets while maintaining flexibility to rapidly respond to customer demands for AI computational resources. Power quality requirements have intensified correspondingly, as AI training jobs running continuously for days or weeks cannot tolerate voltage transients, frequency deviations, or momentary interruptions that legacy enterprise applications might absorb through application-layer redundancy, compelling deployment of double-conversion UPS systems with extended battery strings, N+1 generator redundancy, and automatic transfer switches tested for sub-cycle transition times that preserve uninterrupted operation of sensitive AI accelerator hardware throughout any electrical disturbance scenario.

India Data Center Power Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on solution type, service type, size, and vertical.

Solution Type Insights:

• Power Distribution and Measurement
  • Intelligent PDUs
  • Non-intelligent PDUs
  • Monitoring Software
• Power Backup
  • UPS Devices
  • Generators
• Cabling Infrastructure
  • Transfer Switches
  • Switchgear

The report has provided a detailed breakup and analysis of the market based on the solution type. This includes power distribution and measurement (intelligent PDUs, non-intelligent PDUs, and monitoring software), power backup (UPS devices and generators), and cabling infrastructure (transfer switches and switchgear).

Service Type Insights:

• System Integration
• Training and Consulting
• Support and Maintenance

A detailed breakup and analysis of the market based on the service type have also been provided in the report. This includes system integration, training and consulting, and support and maintenance.

Size Insights:

• Mid-size Data Center
• Enterprise Data Center
• Large Data Center

The report has provided a detailed breakup and analysis of the market based on the size. This includes mid-size data center, enterprise data center, and large data center.

Vertical Insights:

• BFSI
• Telecommunication and IT
• Energy
• Manufacturing
• Others

A detailed breakup and analysis of the market based on the vertical have also been provided in the report. This includes BFSI, telecommunication and IT, energy, manufacturing, and others.

Regional Insights:

• North India
• South India
• East India
• West India

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.

Competitive Landscape:

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.

India Data Center Power Market News:

• October 2025: Google confirmed a USD 15 Billion investment in new data centers and digital infrastructure in the Indian state of Andhra Pradesh. The company will work with Indian firms AdaniConneX and Airtel to build an AI hub in Visakhapatnam, establishing the city as an AI and connectivity hub with subsea cable gateway and clean energy infrastructure.

India Data Center Power Market Report Coverage:

Key Questions Answered in This Report:

• How has the India data center power market performed so far and how will it perform in the coming years?
• What is the breakup of the India data center power market on the basis of solution type?
• What is the breakup of the India data center power market on the basis of service type?
• What is the breakup of the India data center power market on the basis of size?
• What is the breakup of the India data center power market on the basis of vertical?
• What is the breakup of the India data center power market on the basis of region?
• What are the various stages in the value chain of the India data center power market?
• What are the key driving factors and challenges in the India data center power market?
• What is the structure of the India data center power market and who are the key players?
• What is the degree of competition in the India data center power market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India data center power market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India data center power market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India data center power industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.