Artificial Intelligence – Cross Sector Thematic – MW to Managed Services, DC downstream opportunity
Published on 04 Jun 2026
India’s DC expansion extends well beyond colocation and infrastructure deployment, as the rapid buildout of localized cloud and compute infrastructure is creating a significantly larger downstream opportunity across cloud migration, managed services, cybersecurity, AI, sovereign digital architecture, and enterprise modernization. With cloud penetration projected to jump to ~75% by 2030 from ~44% in 2024 as enterprises increasingly shift workloads from on-premise to cloud-based architectures. With this exponential increase in cloud adoption for Indian enterprises, the addressable market (TAM) for Indian IT service providers is poised for commensurate growth. IT vendors with higher India exposure and stronger positioning across telecom, cloud, cybersecurity, enterprise migration/modernization, and government digital infrastructure, would be direct beneficiaries of growing TAM. As cloud migration activity gains momentum, Indian IT vendors are likely to see a multi-fold increase in opportunities across government-led projects before they secure deals or engage with private enterprises.
