India is seeing a significant growth and expansion of data centre infrastructure amid rising demand for digital services. The data centre market is poised to more than double from its current size, the Economic Survey 2024-25, released on January 31, has said.
The data centre market is expected to grow from $4.5 billion in 2023 to $11.6 billion by 2032 at a CAGR of 10.98 percent.
This comes at a time when the country has been attracting billions of dollars in investments for setting up data centre regions from global cloud services providers including Microsoft, Amazon Web Services (AWS) and Google to name a few.
AWS has plans to invest around $12.7 billion to develop cloud infrastructure in India by 2030, of which $8.3 billion was recently allocated to set up operations and data centre in Maharashtra.
Microsoft, too, has earmarked Rs 15,000 crore for data centres in Hyderabad.
India has an edge over many other countries given its lower construction costs, and well-established IT and digital services ecosystem, the survey said.
“India's colocation data centre capacity reached 977 MW11 in 2023. Capacity of 258 MW was added in the year, reflecting a 105 per cent year-on-year growth. The total capacity under construction for 2024-2028 is 1.03 GW, with an additional 1.29 GW planned,” the survey said.
“India benefits from lower construction costs, owing to its well-established IT and digitally enabled services ecosystem, as well as relatively affordable real estate with a median of $6.8 million per MW in 2023, compared to $9.17 million in Australia, $12.73 million in Japan, and $11.23 million in Singapore.”
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