India’s Data Centre investments to cross US$ 20 bn by 2025: Report

The attraction for the investments is backed by an increase in data centre (DC) demand due to growing digitalization and a strong government policy impetus for the sector

September 28, 2022

DC space in India, during the first half of this year, has gone above 9 million sq. ft. with a capacity of 600+ MW

By 2024, DC capacity is expected to double with an additional 400 MW under construction across major Indian cities

Tier II and III cities are also expected to see a rise in demand for DCs, owing to the policy refinement for the industry by the government

Most of the investments were attracted by hyper-scale DCs between 2018-2021 at 77%

Investments in India’s DCs are expected to cross US$ 20 billion by 2025, backed by an increase in DC demand due to growing digitalization, and coupled with a strong government policy impetus, according to a report by real estate firm CBRE. 

According to media reports, a multi-fold jump in data transmission and a surge in demand for high-spec servers was mostly led by OTT, online gaming, increased smartphone usage, e-commerce, online schooling by EdTech platforms, location-agnostic work, along with advanced technologies including machine learning, 5G, blockchain, and artificial intelligence.

DC space in India, during the first half of this year, has gone above 9 million sq. ft. with a capacity of 600+ MW. Over the next two years, this DC capacity is expected to double with an additional 400 MW under construction across major Indian cities. Mumbai is expected to have the most DC stock in India at 48%, followed by Bangalore at 18%, and Chennai at 9%. The Delhi-NCR region, Pune, Hyderabad, and Kolkata accounted for the remaining 25% of the DC market in India. Mumbai, Bangalore and Chennai cumulatively provide 75% of India’s DC capacity. 

Experts said that Tier II and III cities are also expected to see a rise in demand for DCs, owing to the policy refinement for the industry by the government. 

As per the report, most of the investments were attracted by hyper-scale DCs between 2018-2021 at 77%. During the first half of this year, West Bengal attracted most of the investments for hyper-scale DCs at 22%, followed by Uttar Pradesh at 19%, Telangana at 16%, and Tamil Nadu at 8%. 

The report also said that newer strategies are being formed across white space, by the DC industry. White space currently accounts for about 78% of the complete global infrastructure investment for DCs.  


Source: Economic Times

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