By the end of 2025, India's data centre capacity is expected to reach 2,070 MW: Report

By Bricksnwall | 2024-12-13

By the end of 2025, India's data centre capacity is expected to reach 2,070 MW: Report


Mumbai remains the market leader for data centers, with Chennai, Delhi-NCR, and Bengaluru following closely behind.


By the end of 2025, it is anticipated that India's data center (DC) capacity would have grown to approximately 2,070 megawatts (MW). According to a CBRE analysis, the nation's data center capacity is currently about 1,255 MW and is expected to increase to about 1,600 MW by the end of 2024.

 

Mumbai remains the market leader for data centers, with Chennai, Delhi-NCR, and Bengaluru following closely behind. Ninety percent of all data centers in the nation are located in these markets as of September 2024.

 

The infrastructure status granted to the data center sector, together with the 2020 Draft Data Centre Policy, which has created a favourable environment for operators and developers, is one of the major growth factors, according to the 2024 India Data Centre Market Update research.

 

Similar to this, the Digital Personal Data Protection Act (DPDPA), which went into effect in 2023, has boosted India's digital innovation ecosystem by facilitating legitimate data processing and cross-border trade while also fostering stakeholder confidence..

 

Organisations utilise data centers to store their vital applications and information.

 

With almost 475 MW presently under construction and capacity expected to reach 2,070 MW by 2025, India is firmly establishing itself as a global leader in digital infrastructure. In the upcoming years, India will be one of the most alluring locations for data center operators due to the demand from the BFSI, technology, and telecommunications sectors as well as state-level policy incentives, according to Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East & Africa, CBRE.

 

By 2027, data centers will get $100 billion in investment.


According to CBRE, the data center market in India has drawn $60 billion in investment pledges over the past six years, with the total inflow expected to reach $100 billion by the end of 2027.


""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 stated.

 

Tier II cities are becoming more popular as important sites for data centers.


The study also said that Tier-II cities, such as Ahmedabad, Kochi, Visakhapatnam, and Lucknow, are becoming more popular as major sites for data centres due to the advantages of cost-effectiveness and the development in regional data demand.


Source: Hindustan Times

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