India IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: India’s trajectory is increasingly shaped by explosive AI adoption and large-scale digital-public-infrastructure usage, which has sharply elevated demand for sovereign-grade compute (Nov-2023). Enterprises now prioritize providers with strong in-country regions supporting high-density workloads. A clear example is the expansion of hyperscale DC clusters across Hyderabad, Chennai, and Mumbai, which has accelerated hybrid deployments and strengthened India’s position as a multi-region compute hub for South Asia.

Industry Progression: Industry progression accelerated in Feb-2024 when Microsoft announced a major expansion of its India cloud and AI infrastructure footprint, including new datacenter investments. This formal expansion boosts GPU availability for Indian enterprises and reduces procurement friction for large, regulated workloads migrating out of legacy IT environments, intensifying competition among hyperscalers and domestic telcos.

Industry Player Insights: Indian industry shifts are guided by Amazon Web Services, Microsoft Azure, Google Cloud, and Nxtra by Airtel. Airtel Nxtra’s Mar-2024 announcement of a new 100MW data center in Kolkata expands sovereign-hosting choices, improving redundancy options for BFSI and public-sector workloads and strengthening India’s east-region compute backbone.