NEWS – India’s Booming Data Centre Industry

HIGHLIGHTS

Overview of Investment & Growth

• Investments since 2020: $14.7 billion
• Expected investments (next 5-6 years): $20–25 billion
• Report Source: Colliers, 2025

Capacity Growth

• Current capacity (April 2025): 1,263 MW
• Expected capacity by 2030: Over 4,500 MW
• Growth since 2020: 859 MW added
• Capacity growth over last 6–7 years: More than 4x

Real Estate Footprint

• Current footprint: 15.9 million sq ft (msf)
• Expected by 2030: ~55 msf
• Growth over 6–7 years: 3x increase
• Large data centres (above 50 MW): Expected to form nearly two-thirds of total inventory by 2030

Key Drivers of Growth

• Increasing demand for:
  • Digital and cloud services
  • Artificial Intelligence (AI) and Internet of Things (IoT)
  • Higher internet penetration
• Supporting Factors:
  • Global connectivity via submarine cables
  • Availability of affordable land and power
  • Supportive government policies
  • Expansion beyond metros to tier-II and tier-III cities

 City-Wise Market Share

• Mumbai: 41% share (largest market)
• Chennai: 23%
• Delhi NCR: 14%
• Tier-I Markets (2025–2030 forecast): 3,000–3,700 MW capacity addition
• Emerging Markets: Hyderabad, Bengaluru, Pune — set for multifold growth

What is a Data Centre?

A data centre is a specialised space that houses:

• Computer systems
• Networking equipment
• Storage systems

It is essential for data processing, cloud services, and internet infrastructure.

Indian Data Centre Market Structure

▪️ Segments:

1. Captive (owned and operated by enterprises)
2. Outsourced:
   • Colocation
   • Hosting

▪️ Infrastructure Types:

• Servers
• Storage systems
• Enterprise networking equipment

Market Performance Snapshot

• 2023 Revenue: ~$7.44 billion
  • Network infrastructure: Dominant segment with $5.09 billion
• 2022 Capacity: 637 MW
• Global Rank: 13th largest market
• Total data centres: 138
• New DCs planned by 2025:
  • Count: 45
  • Capacity: 1,015 MW
  • Area: 13 million sq ft

 Government Support & Policy Framework

Data Centre Policy Initiatives:

• Objective: Accelerate investments and growth
• Key Provisions:
  • Inclusion under Essential Services Maintenance Act (ESMA)
  • Creation of Data Centre Facilitation Units (DCFU)
  • Formation of Data Centre Economic Zones
  • Special building code classification under National Building Code