Synopsis
India's data centre industry has secured over $6.5 billion in investments from 2014 to 2024, with significant growth in capacity and demand driven by increasing internet penetration and data consumption. Major cities like Mumbai and Chennai dominate the market, indicating a strong future for the sector.Key Takeaways
- Investment in India's data centre sector exceeds $6.5 billion.
- Capacity increased by 139 percent from 2019 to 2024.
- Internet penetration rose from 33.4 percent to 55.2 percent.
- Major growth observed in Mumbai and Chennai.
- India's DC industry valued at $10 billion.
Mumbai, March 24 (NationPress) India’s data centre (DC) sector has attracted investments exceeding $6.5 billion through private equity, joint ventures, and acquisitions from 2014 to 2024, as revealed in a report released on Monday.
The sector has experienced remarkable growth between 2019 and 2024, with a 139 percent increase in capacity, escalating from 590 MW in 2019 to 1.4 GW in 2024, according to the report titled ‘India Data Centre Market: Growth, Trends and Outlook’ by Anarock Capital.
This growth is driven by an increase in internet penetration, which has surged from 33.4 percent in 2019 to 55.2 percent in 2024, nearly doubling data consumption per user from 11.5 GB to 21.1 GB monthly, along with a significant rise in average traffic per smartphone, which jumped from 13 GB to 32 GB.
“India is now a global leader in average mobile data traffic per smartphone, and this alone has significantly influenced the demand for high-quality data centres in the nation. The surge in India’s digital engagement directly indicates future demand for DCs,” stated Devi Shankar, Executive Director - Industrial, Logistics and Data Centres at Anarock Capital.
Mumbai and Chennai are the primary hubs for the DC market, constituting 70 percent of India’s total IT power capacity, with Mumbai contributing nearly half at 49 percent.
These cities have also experienced unprecedented supply growth from 2022 to 2024, with Mumbai seeing a 92 percent increase and Chennai an astounding 340 percent.
Collectively, these areas have achieved an overall occupancy rate of 76 percent, highlighting robust market absorption and operational efficiency.
The report indicates that India has become a prime location for hyperscalers embracing the 'own-and-operate' strategy. In the last five years, approximately 440 acres of land have been secured for hyperscalers across three major cities—Hyderabad, Mumbai, and Pune.
“The current valuation of India’s DC industry stands at $10 billion, with an estimated revenue of $1.2 billion for FY 2024,” mentioned Shobhit Agarwal, MD and CEO of Anarock Capital.
Notably, 78 percent of the revenue is produced by four major DC operators. Although EBITDA growth showed signs of plateauing after 2020, it is forecasted to increase by 50-55 percent as ongoing projects reach stabilization, he added.
Given the exponential rise in data consumption, substantial capital investments, hyperscaler activities, and a strong emphasis on AI and sustainability, India is poised to emerge as a leader in global data infrastructure.
