“India’s Data Centre Capacity Expected to Reach 2,070 MW by 2025, Says Report”

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India’s data centre (DC) capacity is on track to grow significantly, reaching approximately 2,070 megawatts (MW) by the end of 2025, according to a report by CBRE. This represents a sharp increase from the current capacity of 1,255 MW, which is expected to expand to 1,600 MW by the end of 2024.

India's Data Centre Capacity to Reach 2,070 MW by 2025, Boosted by Investment and Growing Demand
India's Data Centre Capacity to Reach 2,070 MW by 2025, Boosted by Investment and Growing Demand

India’s data centre (DC) capacity is on track to grow significantly, reaching approximately 2,070 megawatts (MW) by the end of 2025, according to a report by CBRE. This represents a sharp increase from the current capacity of 1,255 MW, which is expected to expand to 1,600 MW by the end of 2024.

Mumbai continues to lead the data centre market in India, followed by other key cities like Chennai, Delhi-NCR, and Bengaluru. These four cities together account for 90% of the country’s total data centre stock, reflecting their dominant position in India’s digital infrastructure sector. As of September 2024, the data centre market in India is benefiting from an increasingly favorable regulatory environment, including the country’s Data Centre Policy drafted in 2020 and the implementation of the Digital Personal Data Protection Act (DPDPA) in 2023. These measures have enhanced cross-border data trade, legitimate processing, and increased trust among stakeholders, thus driving further growth in the sector.

CBRE’s India Data Centre Market Update 2024 highlights that nearly 475 MW of new data centre capacity is under construction across major cities like Mumbai, Chennai, and Delhi-NCR, which will further boost the country’s infrastructure by 2025. Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa at CBRE, commented on the growth prospects, stating, “With the projected capacity set to reach 2,070 MW by 2025, India is solidifying its position as a global leader in digital infrastructure. The demand from sectors like BFSI (Banking, Financial Services, and Insurance), technology, and telecommunications will continue to fuel this growth.”

Additionally, India’s data centre sector is experiencing a surge in investments. The country has attracted $60 billion in investments over the past six years, and the total inflow is expected to surpass $100 billion by 2027. The market has seen interest from global operators, real estate developers, and private equity funds, all eager to capitalize on India’s booming digital economy.

The report also notes that Tier-II cities, including Ahmedabad, Kochi, Visakhapatnam, and Lucknow, are emerging as key locations for data centres. These cities offer cost-efficiency advantages and are benefiting from regional data consumption growth. As the demand for data services continues to rise, these cities are increasingly becoming viable alternatives to traditional data centre hubs like Mumbai and Delhi-NCR.

India’s data centre market is set for significant growth, with an estimated total stock of 31 million square feet by 2025, up from the current 19 million square feet. As the country strengthens its digital infrastructure, it is well-positioned to become one of the leading destinations for data centre operators globally, supporting the expansion of digital services and innovation across industries.

Sources By Agencies

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