$60 billion investment flowed into India’s Data Centre market in last 6 years: Report

New Delhi (The Uttam Hindu): India’s burgeoning Data Centre market has attracted USD 60 billion from both domestic and international investors between 2019-2024 and given the current growth curve is expected to surpass USD 100 billion in cumulative investment commitments by the end of 2027, according to the latest report by real estate consultant CBRE South Asia.

Mumbai continues to dominate data centre stock, followed by Chennai, Delhi-NCR and Bengaluru, accounting for 90 per cent of the country’s total data centre stock as of September. Currently, India’s total DC stock stands at around 19 Mn. Sq. ft. (land area), which is expected to reach 31 Mn. Sq. ft. by the end of 2025, the report states.

The sector is poised for significant growth in 2025, with nearly 475 MW of capacity under construction across major cities like Mumbai, Chennai, and Delhi-NCR. Key demand drivers for the year ahead include BFSI and Technology companies, it observes.

Tier-II cities like Ahmedabad, Kochi, Visakhapatnam, and Lucknow are gaining traction as key locations for data centres, driven by regional data consumption growth and cost-efficiency advantages, the report points out.

State-wise Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal emerged as the leading states in terms of cumulative investment commitments.

India’s current data centre capacity stands at around 1,255 MW, and it is projected to further expand to 1,600 MW by the end of 2024. The country’s accelerated technology proliferation, digital transformation, increased Internet penetration, policy enablers, and growth in AI-generated data workload will pivot this growth, the report observes.

As sustainability becomes a critical priority, there is a growing focus on integrating renewable energy solutions and advanced cooling technologies, which are helping enhance energy efficiency and reduce the carbon footprint of India’s data centres, the report points out.

Additionally, with AI workloads expected to surpass traditional cloud computing demands, data centre operators are making significant upgrades to their infrastructure to accommodate the evolving needs of AI-driven applications, ensuring they can support the next generation of digital transformation, the report adds.