Strategic Analysis Report | September 2025
India’s data center market is currently valued at around $6 billion and generated about $1.2 billion in revenue in 2023–24, with growth projected at a CAGR of 25–32% through 2026 alone. Investments between $20–30 billion are expected over the next five to seven years, with real estate, electrical systems, racks, cooling, and network infrastructure as major beneficiaries. Data center capacity is projected to triple or quadruple by 2030, with estimates of 4.5 GW (some projections suggest even 17 GW), reflecting the scale of the infrastructure race.
However, this growth is not without its challenges, including the significant capacity gap. Today, India holds only 3% of the world's data centre capacity despite generating 20% of global data. Key bottlenecks include persistent infrastructure deficits like strained power grids and water supply, complex and lengthy permitting processes, and a severe talent shortage.
This report provides a comprehensive analysis of the data center market, including its size, value chain, key components, and global cost benchmarks. It also highlights critical gaps and emerging opportunities shaping the future of the sector.
Comprehensive Research Report | September 2025
The United Arab Emirates (UAE) is in the midst of a profound economic transformation, actively shifting its focus from a resource-based economy to a diversified, industrial powerhouse. This strategic pivot is underpinned by a cohesive and centrally planned national framework, "Operation 300bn", which aims to more than double the industrial sector's contribution to the national GDP, from Dh 133 billion in 2021 to Dh 300 billion by 2031.
This strategy is not merely an aspirational target; it is a state-backed program with significant financial, regulatory, and logistical support. The investigation reveals that the UAE's primary appeal to foreign investors and global manufacturers, particularly in the high-tech, non-oil sectors of electrical, energy storage, and critical minerals, stems from a unique combination of fiscal advantages, strategic infrastructure, and proactive foreign trade policies.
Key findings of this report highlight a multi-faceted approach to attracting investment. The UAE offers substantial fiscal and regulatory benefits, including customs exemptions for industrial production inputs and competitive energy tariffs, which significantly reduce the capital and operational costs for manufacturers.