Investment of $60 Billion in India's Data Centre Sector Over Six Years: New Report
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New Delhi, Dec 12 (NationPress) The rapid growth of India's Data Centre sector has resulted in an impressive USD 60 billion influx from both domestic and international investors during the period from 2019 to 2024. Based on the current growth trends, cumulative investment commitments are projected to exceed USD 100 billion by the end of 2027, according to a recent report by CBRE South Asia, a prominent real estate consultancy.
Mumbai remains the leading city for data centre assets, followed by Chennai, Delhi-NCR, and Bengaluru, which together constitute 90 percent of the nation's total data centre inventory as of September. Presently, India's total data centre stock is approximately 19 million sq. ft. of land, with expectations to grow to 31 million sq. ft. by the end of 2025, as highlighted in the report.
The sector is gearing up for substantial expansion in 2025, with nearly 475 MW of capacity under development in major urban areas such as Mumbai, Chennai, and Delhi-NCR. The primary demand sources for the upcoming year are anticipated to be the BFSI and technology sectors, the report notes.
Emerging Tier-II cities such as Ahmedabad, Kochi, Visakhapatnam, and Lucknow are becoming increasingly significant for data centres, spurred by regional data consumption growth and cost-effectiveness, according to the report.
From a state perspective, Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal have emerged as the top states for cumulative investment commitments.
India's existing data centre capacity is around 1,255 MW, with projections to increase to 1,600 MW by the close of 2024. Factors driving this expansion include accelerated technology adoption, digital transformation, rising internet access, supportive policies, and an increase in AI-generated data workload, as noted in the report.
As sustainability gains prominence, there is a heightened emphasis on implementing renewable energy solutions and advanced cooling systems, which are crucial for improving energy efficiency and minimizing the carbon footprint of India's data centres, the report emphasizes.
Moreover, with AI workloads anticipated to exceed traditional cloud computing needs, data centre operators are investing significantly in upgrading their infrastructure to meet the changing demands of AI-centric applications, ensuring they are equipped for the future of digital transformation, the report concludes.
