PUBLISHER: Inkwood Research | PRODUCT CODE: 1771420
PUBLISHER: Inkwood Research | PRODUCT CODE: 1771420
The India data center energy storage market is anticipated to develop with a CAGR of 21.69% over the forecast period of 2025-2032. The market was valued at $29.59 million in 2024 and is expected to reach revenue of $131.83 million by 2032.
The India data center energy storage market is witnessing exponential growth, propelled by India's digital transformation, booming cloud computing adoption, and the critical need for uninterrupted power solutions. With hyperscale data center investments surging and cutting-edge battery innovations, the market is pivoting toward high-efficiency energy storage systems like lithium-ion batteries essential for preventing downtime and safeguarding mission-critical data.
A key growth catalyst is the rapid expansion of India's IT infrastructure, further accelerated by the government's data localization policies. These regulations have triggered a wave of data center construction, driving demand for scalable energy storage solutions. Additionally, urbanization trends and smart city initiatives are amplifying the need for high-capacity data centers, pushing industry leaders to deploy intelligent power management systems that optimize energy usage and reduce operational costs.
The India data center energy storage market is shaped by factors such as the rising demand for Uninterruptible Power Supply (UPS), ongoing battery technology advancements, and increased investment in hyperscale and colocation data centers. As data centers become more integral to sectors including telecommunications, e-commerce, and cloud infrastructure, the importance of dependable power backup solutions continues to grow. New battery chemistries are emerging, offering enhanced efficiency and cost-effectiveness for data center operators.
However, the India data center energy storage market faces challenges such as high initial capital investment and complex integration of energy storage systems into existing infrastructures. Achieving seamless compatibility and optimal performance is crucial for effective energy management. While Battery Energy Storage Systems (BESS) paired with solar energy offer lower operational costs than diesel generators, the market still grapples with delays and cost overruns that affect project economics.
The India data center energy storage market segmentation includes storage technology, industry vertical, data center tier, and data center size.
Lithium-ion batteries are gaining traction due to their superior energy density, longer lifespan, and declining costs. The UPS and inverter backup market in India has grown substantially, with 1.7 GWh of lithium-ion battery installations recorded. The continued dominance of lithium-ion batteries is driven by their high energy density and efficiency, addressing the critical need for reliable backup power in data centers.
The IT & telecommunication sector emerges as a key end-user in the India data center energy storage market. The rapid adoption of 5G networks, e-commerce growth, and rising data traffic drive this sector's demand for high-efficiency energy storage solutions. As data centers become vital for national security, internet infrastructure, and economic performance, the market is poised for sustained growth.
Some of the top enterprises operating in the India data center energy storage market include ABB Ltd, Delta Electronics Inc, Eaton Corporation, Huawei Technologies Co Ltd, Legrand SA, Mitsubishi Electric Corporation, Schneider Electric SE, and Vertiv Holdings Co.
Vertiv Holdings Co is a global leader in critical digital infrastructure and continuity solutions. The company offers comprehensive power management solutions, including energy storage systems, uninterruptible power supplies (UPS), and thermal management solutions tailored for India's rapidly expanding data center industry. Vertiv's Liebert UPS Systems and Vertiv Energy Storage Systems leverage advanced lithium-ion battery technologies to provide high-efficiency power backup and seamless continuity for data centers. The company's modular and scalable solutions address the growing demand for resilient, energy-efficient, and sustainable infrastructure in India, driven by digitalization, cloud adoption, and data localization mandates.