India’s data centre (DC) capacity is projected to reach about 2,070 megawatts (MW) by the end of 2025. The country’s current data centre capacity stands at about 1,255 MW, and is estimated to expand to around 1,600 MW by the end of 2024, a report by CBRE has said.
Mumbai continues to dominate data centre stock, followed by Chennai, Delhi-NCR, and Bengaluru. As of September 2024, these markets account for 90% of the country’s total data centre stock.
The 2024 India Data Centre Market Update report said that one of the key growth drivers is the infrastructure status accorded to the data centre sector, coupled with the 2020 Draft Data Centre Policy, which has fostered a conducive environment for operators and developers.
Similarly, implementing the Digital Personal Data Protection Act (DPDPA) in 2023 has facilitated cross-border trade and legitimate data processing and built stakeholder trust, propelling India’s digital innovation ecosystem.
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A data centre is a facility that organizations use to house their critical applications and data.
“With capacity set to reach 2,070 MW by 2025 and nearly 475 MW currently under construction, India is solidifying its position as a global leader in digital infrastructure. The demand from BFSI, technology, and telecommunications sector, combined with state-level policy incentives, will continue to fuel this growth, making India one of the most attractive destinations for data centre operators in the coming years,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE.
Data centres to see an investment of $100 billion by 2027
India’s data centre market has attracted investment commitments of $ 60 billion in the last six years, and the cumulative inflow is estimated to surpass $100 billion by the end of 2027, according to CBRE.
“The Data Centre (DC) market in India has experienced substantial investment from global operators, real estate developers, and private equity funds seeking to capitalise on the country’s burgeoning market,” the consultant said.
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India’s total data centre stock currently stands at 19 million sq ft, which is expected to reach 31 million sq ft by the end of 2025. The report further added that the sector is poised for significant growth in 2025, with nearly 475 MW of capacity under construction across major cities like Mumbai, Chennai, and Delhi-NCR. Key demand drivers for the year ahead include BFSI and Technology companies.
Tier II cities gaining traction as key locations for data centres
The report also pointed out that Tier-II cities like Ahmedabad, Kochi, Visakhapatnam, and Lucknow are gaining traction as key locations for data centres, driven by regional data consumption growth and cost-efficiency advantages.
