Investment in Data Centre Systems in India Set to Rise by 19.1% This Year
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Synopsis
Investment in data centre systems in India is forecasted to rise by 19.1% in 2025, nearly doubling its growth from 2024. This growth is driven by the demand for software, IT services, and AI-ready infrastructure, as enterprises focus on cloudification and digitization.
Key Takeaways
- Data centre systems spending in India projected to rise by 19.1% in 2025.
- Software and IT services are key drivers of IT expenditure growth.
- India's data centre market attracted $60 billion in investments from 2019 to 2024.
- Global IT spending expected to reach $5.61 trillion in 2025.
- Investment in AI-ready infrastructure is crucial for enterprises.
New Delhi, Jan 21 (NationPress) Investment in data centre systems across India is projected to surge by 19.1 percent in 2025, almost doubling its growth rate from the previous year, based on the latest predictions from Gartner released on Tuesday.
Software and IT services are pivotal in driving the growth of IT expenditure in India, with anticipated increases of 16.9 percent and 11.2 percent respectively in 2025.
“The surge in software spending is largely attributed to the premium pricing of GenAI-enabled solutions, while IT services investment is driven by enterprises' demands for cloudification, digitization, and consulting services,” stated Naveen Mishra, VP Analyst at Gartner.
India's data centre sector has garnered $60 billion from both local and foreign investors between 2019 and 2024, with expectations to exceed $100 billion in total investment commitments by the close of 2027, according to a recent report by real estate consultancy CBRE South Asia.
Several segments, including data center systems, devices, and software, are set to experience double-digit growth in 2025, primarily due to generative AI (GenAI) hardware advancements, as per Gartner.
Nonetheless, these enhanced segments may not yet show significant differences in functionality, despite the introduction of new hardware.
“Businesses are channeling investments into AI-ready infrastructure for specific use cases,” Mishra remarked. The focus on accelerated servers for AI tasks is a key factor, leading to increased end-user expenditure in this area in 2025 compared to the prior year.
On a global scale, IT spending is anticipated to hit $5.61 trillion in 2025, reflecting a 9.8 percent rise from 2024.
“Although CIO budgets are expanding, a significant portion will simply cover price hikes within their ongoing expenses,” noted John-David Lovelock, distinguished VP analyst at Gartner.
By 2026, more than 50 percent of spending on application software is expected to be influenced by GenAI.
As companies concentrate on developing and refining their technological frameworks for AI, investments in tools and platforms for deployment, management, and scaling are set to increase, added Mishra.
