NEW DELHI, India — India’s data center industry is poised for significant growth over the next decade, with the market projected to expand from $5.55 billion in 2025 to $13.11 billion by 2034, according to a report released Wednesday by Quess Corp.
The study estimates the sector will grow by about 136 percent during the period, driven by rising demand for digital infrastructure and supported by a compound annual growth rate of roughly 10 percent between 2026 and 2034.
India’s data center and cloud infrastructure ecosystem currently employs between 86,000 and 90,000 professionals across more than 50 service providers.
However, the report highlights a growing challenge for the industry: a widening gap between infrastructure investment and the availability of specialized talent needed to operate and maintain advanced data infrastructure.
According to the study, the sector’s biggest constraint is shifting from capital investment and power availability toward a shortage of a “skill-ready” workforce capable of supporting the next phase of growth.
As the industry moves toward hyperscale development, including large gigawatt-scale data center campuses, the report warns of an emerging “infrastructure-talent mismatch.”
The study noted that the Supply Sufficiency Index for AI operations currently stands at just 47, indicating a significant shortage of skilled professionals required to manage next-generation data infrastructure.
Kapil Joshi, CEO of IT Staffing at Quess Corp, said India is approaching a critical moment in the development of its digital ecosystem.
“While reaching a $13 billion valuation is a testament to India’s digital intensity, the resilience of this infrastructure depends on our ability to bridge the skill gap,” Joshi said.
The report also pointed to the rapid growth of artificial intelligence workloads, which are expected to account for nearly 30 percent of total data center capacity by 2026.
This shift is projected to drive a 133 percent increase in demand for specialized skill clusters such as cloud computing, DevOps, and security and compliance roles by 2029.
At the same time, the report said IT operations is facing a 73 percent shortage in key operational roles, including infrastructure monitoring, incident response, and network management.
By industry segment, the IT and telecommunications sector accounts for about 48 percent of demand for data center capacity in India. The banking, financial services, and insurance sector represents around 20 percent, while government workloads contribute roughly 10 percent of demand, the report said. (Source: IANS)
