New Delhi. According to the latest report by real estate consultant CBRE South Asia, India's rapidly growing data center market has attracted domestic and international investors between 20192024. 60 billion dollars have been invested.
At the same time, considering the current growth rate, the cumulative investment commitment is expected to cross $100 billion by the end of 2027.
Mumbai continues to dominate the data center stock, followed by Chennai, DelhiNCR and Bengaluru, which together account for 90 per cent of the total data center stock in the country as of September.
India's total DC stock currently stands at around 19 million sq ft (land area), which is expected to reach 31 million sq ft by the end of 2025, the report said.
The sector is set for tremendous growth in 2025, with approximately 475 MW of capacity under construction in major cities such as Mumbai, Chennai and DelhiNCR.
The report said that BFSI and technology companies will be key in driving demand for the coming year.
The report notes that tier2 cities such as Ahmedabad, Kochi, Visakhapatnam and Lucknow are becoming popular as prime locations for data centers due to regional data consumption growth and costefficiency benefits.
Statewise, Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal have emerged as the leading states in terms of cumulative investment commitments.
India's current data center capacity is around 1,255 MW and is projected to reach 1,600 MW by the end of 2024.
The report said that rapid technology diffusion in the country, digital transformation, increasing internet penetration, policy enablers and increasing AIgenerated data workloads will be key to this growth.
The report notes that as sustainability has become a key priority, the focus is on integrating renewable energy solutions and advanced cooling technologies, which are helping to increase energy efficiency.
Additionally, the report notes that with AI workloads expected to surpass traditional cloud computing demands, data center operators are upgrading their ecosystems to accommodate the emerging needs of AIdriven applications.
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Image Credit: KhasKhabar.