By FY27, India’s data center capacity is expected to more than double to 2,100 MW: Icra
According to Icra, six cities account for about 95% of the current capacity, with Mumbai and Chennai leading the race.
New Delhi: According to credit rating agency Icra, India’s capacity is predicted to reach 2,000–2,100 megawatts (MW) by FY2027, with projected investments of Rs 50,000–55,000 crore driven by the country’s digital boom and data localization initiatives. Major companies including NTT Global Data Centers, CtrlS Data Centers, STT Global Data Centers, Sify Technologies, and Nxtra Data dominate 85% of the industry (as of March 2024), according to a statement released by Icra. The present capacity is 950 MW.
India’s data center landscape is undergoing a radical change due to the increase in data generation and the drive for data localization, according to Icra Vice President Anupama Reddy. “The low data tariff plans, access to affordable smartphones, adoption of new technologies and growing user base of social media, e-commerce, gaming and OTT platforms are some of the key triggers for data explosion,” she stated. Furthermore, there are a lot of chances due to the demand driven by artificial intelligence (AI), which is predicted to grow several times over the next three to five years.
According to Icra, six cities account for about 95% of the current capacity, with Chennai and Mumbai leading the pack. Mumbai continues to be the main hub for data center construction, accounting for more than half of the current capacity thanks to its strategic advantages in power reliability and connectivity. It is also anticipated to continue to be a major destination for India’s future data center capacity.
According to Icra, data center revenues are expected to increase significantly by 23–25% YoY in FY2025 due to the growing demand for co-location services, especially from hyperscalers and industries like finance and IT. By storing several servers and computer gear in one shared data center, a technique known as co-location lowers the cost of constructing and operating data centers.
Additionally, it stated that Indian data center operators are likely to boost their green electricity expenditure from the current level of less than 5% to an estimated 20–25% by 2028 as environmental concerns gain traction.
