Indian Economy News

India's data centre capacity set to touch 14GW by 2035

The data centre industry in India is on the cusp of a massive growth phase, with the cumulative installed capacity set to increase from the current 1 GW to 14 GW by 2035, thanks to the accelerating digitization process, adoption of cloud technology, AI applications, and increased data utilization. Estimated industry data suggests that this incremental growth is expected to require more than Rs. 5 lakh crore (US$ 60 billion) as capital expenditure by the end of the decade. Cloud, hyperscale, and local players are increasingly foraying into key markets such as Mumbai, Chennai, Hyderabad, Delhi NCR, and Bengaluru, with the aided push from the increased demand from the banking, fintech, ecommerce, and telecommunication as well as the Indian government's initiatives for a Data Destination Country for the world.

Support from policies, better connectivity to fibres, and access to renewable energy sources are further aligning to make India an attractive location for data centre hosting. Governments of the states are coming up with specific data centre policies and facilitating investment in the industry through incentives such as allocation of land at reduced costs, power subsidies, and single-window clearance, among others. The rise in data localization and the use of AI applications are expected to boost the processing and storage needs of data in the country. The industry is witnessing an increase in demand for qualified workers, better cooling solutions, and environmentally sound infrastructure as the industry's capacity grows and as data centres become an integral part of the country's technology evolution and growth roadmap.

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