India’s data center capacity is set to grow to 2,070 megawatts (MW) by the end of 2025, according to a recent report from CBRE, as published by Hindustan Times.
The current capacity of 1,255 MW is expected to expand to approximately 1,600 MW by the end of 2024, reflecting the rapid development of the country’s digital infrastructure.
Mumbai continues to lead in data center stock, followed by Chennai, Delhi-NCR, and Bengaluru. As of September 2024, these four cities accounted for 90% of India’s total data center capacity, underscoring their role as key hubs in the sector.
CBRE’s 2024 India Data Center Market Update identifies infrastructure status and the 2020 Draft Data Center Policy as critical enablers of the sector’s growth. These measures have created a supportive environment for operators and developers, the report said.
Additionally, the implementation of the Digital Personal Data Protection Act in 2023 has facilitated cross-border trade, strengthened trust in legitimate data processing, and propelled India’s digital ecosystem.
Anshuman Magazine, Chairman and CEO of CBRE India, South-East Asia, Middle East, and Africa, emphasized the country’s potential. “With capacity set to reach 2,070 MW by 2025 and nearly 475 MW under construction, India is solidifying its position as a global leader in digital infrastructure,” he said. “Demand from the BFSI, technology, and telecommunications sectors, along with state-level policy incentives, will continue to drive this growth.”
India’s data center market has attracted $60 billion in investment over the past six years and is projected to exceed $100 billion by 2027, CBRE reported. Global operators, real estate developers, and private equity funds are increasingly drawn to the country’s burgeoning digital infrastructure market.
India’s total data center stock currently spans 19 million square feet and is projected to grow to 31 million square feet by 2025. Key demand drivers include the BFSI and technology sectors, which continue to fuel the need for robust data processing and storage facilities.
The report highlighted emerging opportunities in Tier II cities, such as Ahmedabad, Kochi, Visakhapatnam, and Lucknow. These locations are gaining traction due to regional data consumption growth and cost advantages, making them attractive alternatives for data center development.
With significant investments, ongoing construction projects, and supportive policies, India is poised to strengthen its position as a leading destination for data center operations globally.