Indian Economy News

India data centre boom to drive 10 million sq. ft realty demand by 2026

The Indian data centre sector is set for impressive expansion, with forecasts indicating an additional 791 MW capacity by 2026. This growth is expected to demand 10 million sq. ft. of real estate space, attracting investments totalling US$ 5.7 billion, according to a JLL India study. The surge is largely driven by the growing adoption of Artificial Intelligence (AI). As AI usage accelerates, the demand for Indian data centres is projected to range between 650-800 MW during 2024-26. The rapid increase in computing power and new applications are expected to fuel robust demand for the data centre industry. Cloud Service Providers (CSPs) have adjusted their strategies to accommodate AI-driven demand and disclosed plans for increased investments.

"India is poised to be the third-largest economy, with a projected US$ 5 trillion GDP by 2027 and a digital economy contribution of around 20%. This digital expansion is anticipated to propel the growth of India's data centre industry, projected to increase from 853 MW in 2023 to 1,645 MW by 2026, requiring an investment of US$ 5.7 billion and around 10 million sq. ft. of real estate," said Head of Research & REIS, India, JLL Mr. Samantak Das. India’s focus on AI is evident through the India AI mission, aimed at fostering innovation, upskilling the workforce, and ensuring responsible deployment of AI technology. With a large user market, talented workforce, and thriving startup ecosystem, India presents a significant opportunity to emerge as a global data hub driven by sustainable practices. The country's data centre sector expanded from 350 MW in 2019 to 854 MW in 2023, which aligns with increasing digital usage trends.

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