India’s burgeoning Data Centre market attracted USD 60 billion from both domestic and international investors between 2019 and 2024 and, given the current growth curve, is expected to surpass USD 100 billion in cumulative investment commitments by the end of 2027, according to the latest report by real estate consultant CBRE South Asia.
Mumbai continues to dominate data centre stock, followed by Chennai, Delhi-NCR, and Bengaluru, accounting for 90 per cent of the country’s total data centre stock as of September. Currently, India’s total DC stock stands at around 19 Mn. Sq. ft. (land area) is expected to reach 31 Mn. Sq. ft. by the end of 2025, the report states.
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. It observes that key demand drivers for the year ahead include BFSI and Technology companies.
The report points 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.
State-wise, Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal emerged as the leading states regarding cumulative investment commitments.
India’s current data centre capacity is around 1,255 MW, and it is projected to expand to 1,600 MW by the end of 2024. The report observes that the country’s accelerated technology proliferation, digital transformation, increased Internet penetration, policy enablers, and growth in AI-generated data workload will pivot this growth.
As sustainability becomes a critical priority, the report points out a growing focus on integrating renewable energy solutions and advanced cooling technologies, helping enhance energy efficiency and reduce the carbon footprint of India’s data centres.
Additionally, with AI workloads expected to surpass traditional cloud computing demands, data centre operators are significantly upgrading their infrastructure to accommodate the evolving needs of AI-driven applications, ensuring they can support the next generation of digital transformation, the report adds.
– IANS
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