Indian Economy News

Data centre capacity in the country has increased from about 375 MW in 2020 to around 1500 MW by 2025

India’s data centre industry is witnessing steady expansion, reflecting the rapid growth of the country’s digital economy and emerging technologies. The total data centre capacity in India has increased from about 375 megawatts (MW) in 2020 to around 1,500 MW by 2025, highlighting the growing demand for data storage and processing infrastructure. The expansion is supported by the rising adoption of cloud services, artificial intelligence (AI), digital platforms, and high-performance computing applications. To support AI innovation, about 38,231 GPUs have been onboarded through 14 empanelled service providers and data centres under the AI compute capacity framework. These computing resources are being made available to startups, researchers, academic institutions, and other eligible users at a subsidised average rate of Rs. 65 per hour, which is around one-third of the global average cost. Data centres supporting this infrastructure are located across major technology hubs, including Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida, and Jamnagar, strengthening India’s digital infrastructure network.

The government is also addressing the infrastructure requirements necessary to support the long-term growth of the data centre ecosystem, including electricity and water supply. According to estimates from the Ministry of Power, electricity demand from data centres is expected to reach 13.56 gigawatts (GW) by 2031–32, and India’s national transmission network is being continuously expanded to ensure reliable power availability across regions. The recently enacted Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act aims to support the development of reliable power solutions for emerging sectors such as AI and data centres, including the future deployment of small modular and micro nuclear reactors. At the same time, the industry is adopting advanced cooling technologies such as direct-to-chip liquid cooling, adiabatic cooling, and immersion cooling to minimise water usage and improve energy efficiency. These developments are strengthening India’s data centre ecosystem while supporting the country’s expanding digital and AI-driven economy.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.