New Delhi: Data centre (DC) investments in India will cross $100 billion by the end of 2027. A report published by Global Commercial Real Estate Services (CBRE) showed this. India’s data centre market has attracted nearly $60 billion in investment commitments between 2019 and 2024.
India’s Data Centre (DC) market is witnessing a surge in investment activity. As per data, Maharashtra and Tamil Nadu are emerging as the most preferred destinations.
Mumbai accounts for 49 per cent of India’s total DC stock. Mumbai is followed closely by Chennai, Delhi-NCR, and Bengaluru. Together, these Tier-I cities constituted about 90 per cent of the country’s DC stock in the January-September 2024 period.
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Mumbai and Chennai’s stronghold is bolstered by their strategic infrastructure, including multiple cable landing stations, government support, and established financial industries, making them prime hubs for BFSI, cloud, hyperscale, and OTT companies.
India’s DC stock stood at approximately 1,255 MW (~19 million sq. ft.) as of September 2024 and is projected to grow to around 1,600 MW (~24 million sq. ft.) by the end of the year. In 2025, an additional 475 MW of capacity is under construction, with Mumbai and Chennai expected to lead the supply additions.
Demand from technology firms, BFSI, fintech, and media sectors, along with public sector undertakings, is expected to further boost occupancy rates, which currently stand at 75-80 per cent. India’s generative AI sector is forecasted to grow at a compound annual growth rate (CAGR) of 28 per cent from 2023 to 2030, contributing significantly to DC demand. The adoption of generative AI is projected to add $400 billion to India’s economy by 2030.
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