India's Data Centre Capacity Anticipated to Increase 77% to 1.8 GW by 2027
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Synopsis
India's data centre industry is projected to grow significantly, with an increase of 77% to reach 1.8 GW by 2027. Driven by demand from cloud services and AI, Mumbai leads the market at 52% capacity.
Key Takeaways
- India's data centre capacity is set to increase by 77% by 2027.
- Mumbai holds 52% of the total capacity.
- Investment of $5 billion is expected for infrastructure.
- The BFSI and technology sectors contribute significantly to occupancy.
- Technological advancements will drive future growth.
Mumbai, April 9 (NationPress) The data centre sector in India is set for significant expansion, with capacity expected to rise by 77% by 2027, reaching an impressive 1.8 GW, as indicated by a recent report released on Wednesday.
This astounding growth follows the industry exceeding the 1 GW threshold in 2024, showcasing a remarkable 24% compound annual growth rate (CAGR) since 2019.
Fueled by the increasing demand from cloud service providers and the rapidly evolving AI industry, this growth cements India's status as a burgeoning leader in the global digital infrastructure arena, according to the report from JLL.
Mumbai stands out as the leading city in India's data centre landscape, accounting for 52% of the nation's total capacity. This dominance underscores Mumbai's vital role in India's digital infrastructure and its recognition as the country's data epicenter.
Chennai ranks second, housing 21% of India's data centre capacity. Notably, established technology hubs like Bengaluru, often referred to as India's Silicon Valley, and Hyderabad each contribute 7% to the overall data centre capacity.
“The India AI mission aims to enhance AI integration across various sectors, aiding in the pursuit of a $1 trillion digital economy. India is projected to introduce an additional data centre supply of 785MW (IT load) with an investment of $5 billion in the digital and real estate sectors,” stated Rachit Mohan, APAC Lead (Data Centre Colocation Leasing) and Lead (Data Centre Transactions and Leasing), India, JLL.
“Future demand growth may face challenges due to the US diffusion policy that limits the transfer of advanced technologies,” Mohan added.
The BFSI (banking, financial services, and insurance) and technology sectors closely follow, contributing 18% and 12% respectively to the total occupancy.
The Indian data centre industry witnessed remarkable growth in the second half of 2024 (July-December), with supply increasing by 51% year-on-year, reaching 114MW.
“The Indian data centre sector is on the brink of extraordinary growth, propelled by technological innovations and favorable government policies,” commented Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.
The Digital Personal Data Protection Act and its related regulations are poised to reshape the data protection framework, affecting colocation data centre operators.
