Major companies like Netflix, Amazon, and Google are heavily investing in content delivery networks (CDNs) to meet the increasing data demands in India’s Tier-2 cities, including Pune, Hyderabad, Ahmedabad, and Jaipur. The growing consumption of data is primarily fuelled by the rise of OTT platforms, expanding e-commerce, and the government’s push for digital initiatives. Other key players, such as Meta, Cloudflare, and Akamai, are also scaling their CDN infrastructure to bring content closer to users, enhancing internet performance and reducing latency.

What are CDNs and why are they crucial? 

CDNs are networks of servers strategically located to store and deliver internet content closer to end users. This minimises the travel time for data across the internet, improving speed and user experience. Building high-performance CDNs involves significant investment in servers, computing infrastructure, and points of presence to handle growing traffic demands. As Mitesh Jain, Regional Vice President—India at Akamai Technologies, explains, the surge in OTT platforms, online shopping, and digital government services is propelling the need for robust CDN infrastructure across the country.

The soaring growth of India's CDN market 

India’s CDN market has experienced explosive growth, surging from $35.2 million in 2018 to an expected $2.85 billion by 2027, as reported by the Telecom Regulatory Authority of India (TRAI). Increasing internet penetration and low-cost data have led to a need for hosting content closer to users to support the booming digital economy. According to Ericsson, India is on track to surpass China as the largest data consumer by 2029, with monthly per-capita data consumption expected to rise from 29 GB in 2023 to 68 GB.

Tier-2 and Tier-3 cities: Driving the data revolution 

Tier-2 and Tier-3 cities, such as those in Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Bihar, and Chhattisgarh, are leading the way in data consumption. Residents of these areas consume 38–42 GB of data per month, significantly outpacing metro cities like Delhi and Mumbai, where average monthly usage ranges between 30–34 GB. Raunak Maheshwari, Executive Director at Extreme Infocom, noted that companies like Meta have expanded their CDN infrastructure to state capitals and are expected to cover half of India’s major cities within two years.

Infrastructure challenges and innovative solutions 

Despite the rapid growth, challenges persist, particularly the limited penetration of broadband and wireline networks in rural and semi-urban areas. India has over 1,500 population centres with more than 50,000 households, many of which lack adequate connectivity to unlock their full data consumption potential. Companies like Akamai are addressing this gap by deploying CDN sites beyond metropolitan hubs and establishing edge computing centres in cities like Chennai, Mumbai, and Bengaluru, enabling applications like gaming, video streaming, and IoT.

Becoming the largest data consumer 

India is already the world’s largest data consumption market, with 956 million broadband users, including 600 million mobile users. The low cost of data has made it essential to place caching servers closer to consumers. To achieve this, content providers are collaborating with telecom companies or building their infrastructure. As companies like Netflix, Amazon, Meta, Google, and Cloudflare continue to expand their CDN investments, India’s digital landscape is set to transform further.

A robust digital future  

While connectivity challenges in rural and semi-urban areas remain, ongoing investments in CDN infrastructure will significantly boost internet performance and accessibility. With India poised to become the largest data consumption market by 2029, its CDN infrastructure will serve as the backbone for a more robust and inclusive digital ecosystem.