Bangalore, 29 October 2025 – The India enterprise infrastructure market is undergoing a robust transformation as hyperscalers, cloud service providers, and domestic data center operators intensify their investments to address the surge in local demand and comply with data sovereignty requirements. Government-led data localization regulations, such as Digital Personal Data Protection Act (DPDPA), along with enterprises need for low-latency and compliant infrastructure are forcing these players to rapidly expand their data center buildouts across the country. As per IDC ’s latest Worldwide Quarterly Enterprise Infrastructure Tracker, India’s enterprise infrastructure market is expected to witness a 16.4% YoY growth in value by CY2025. The country’s rise as a key hub for global technology investment and innovation is fueling a transformational shift in the enterprise infrastructure landscape and offering dynamic growth opportunities.
Key Opportunities Driving Enterprise Infrastructure Demand in India
• Enterprises Accelerate Infrastructure Modernization to Power Next-Gen Technologies
Infrastructure modernization has been a top priority for organizations, serving as the fundamental building block for adapting to the demands of next-generation technologies. Legacy systems often restrict scalability, flexibility, and responsiveness, making them unsuitable for new age technologies such as AI, edge computing, hybrid cloud, and automation. As a result, enterprises are increasingly investing in modern infrastructure platforms built on cloud-native, software-defined, and AI-ready architectures that provide the scalability and agility required to support the dynamically changing workloads requirements.
• Government’s Boost to India AI Mission Set to Accelerate GPU Infrastructure and Indigenous AI Development
The India AI Mission is expected to receive substantial orders in the coming quarters following the government’s recent decision to significantly boost funding. This enhanced funding aims to strengthen India’s AI capabilities by expanding GPU infrastructure through local datacenter operators to support development of Indianized large language models (LLMs), AI research/startups and build a robust indigenous domestic AI ecosystems.
• Surge in Cyber Threats Pushes Indian Enterprises Toward Secure, Resilient Infrastructure
Escalating cyber threats are transforming how enterprises in India approach their infrastructure strategies. With attacks growing more sophisticated and frequent, organizations are increasingly investing in modern, secure, and highly available infrastructures to strengthen cyber resiliency. This has become essential not only for regulatory compliance but also for ensuring uninterrupted business operations
The Road Ahead for the Enterprise Infrastructure Market
India’s Enterprise Infrastructure market is undergoing a phase of rapid advancement, driven by increase digital adoption and technology investments across key verticals such as professional services, BFSI, and telecom. Professional services firms are significantly increasing investments in large-scale AI infrastructure buildouts to cater to local demand while meeting stringent data localization requirements to ensure compliance and security. Meanwhile, the BFSI sector is aggressively investing in digital transformation to deliver personalized financial services, seamless payment solutions, and enhanced fraud detection and risk management capabilities. The telecom industry’s growth is fueled by the ongoing 5G rollout, modernization of OSS/BSS systems, expansion of content delivery networks (CDNs), and the increasing demand for network and security log analytics.
“The future of enterprise infrastructure lies in intelligent, automated, and cloud native architectures that seamlessly integrate applications across diverse environments. As organizations modernize to handle the explosive growth in data and compute demands driven by AI/GenAI and next-generation workloads, the focus will shift toward scalable, secure, and energy-efficient systems to deliver high performance while ensuring sustainability.” said Dileep Nadimpalli, senior research manager at IDC Asia Pacific.
For more information about IDC’s Worldwide Quarterly Enterprise Infrastructure Tracker, please contact Dileep Nadimpalli at +91-9986008999 and dnadimpalli@idc.com.
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*Enterprise Infrastructure refers to servers, external enterprise storage systems, and purpose-built appliances (hyperconverged infrastructure [HCI] appliances and purpose-built backup appliances [PBBAs])
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