New Delhi . India's data center operational capacity is expected to more than double by 2027.
India's data center operational capacity is estimated to increase from 950 MW in FY2024 to 20002100 MW by FY2027, involving an investment of Rs 50,00055,000 crore, according to a report on Tuesday.
Data center capacity in India is dominated by a few players such as NTT Global Data Centers, STT Global Data Centers, CtrlS Data Centers, Sify Technologies and Nxtra Data Limited. They had 85 percent share in the operational capacity till March 2024.
Credit Rating ICRA's report said that given the strong demand for data centers in the country, many new developers such as Yota, Digital Connections, Lumina Cloud Infra, CapitaLand, Digital Edge etc. have entered the industry with largescale investments. Have done.
Anupama Reddy, Vice President and CoGroup Head (Corporate Ratings), ICRA, said, “Low data tariff plans, access to affordable smartphones, adoption of new technology, increasing number of users on social media, ecommerce, gaming and OTT platforms are driving data usage. are the main causes of explosion.”
“Data center growth is being supported by the regulatory policies of the central and state governments, digital personal data protection bills and the state of the infrastructure,” Reddy said.
Colocation services enabled by hyper scalers contribute to 8085 per cent of data center revenues in the country.
About 95 percent of the existing data center capacity is in six cities in India. In this, Mumbai and Chennai are at the forefront in this race due to their dense wet cable ecosystem.
According to the report, data center players are also expected to invest in green energy to meet their power requirements. Green energy accounts for about 75 percent of total electricity consumption for the top three DC operators.
“As a percentage of total power consumption, it is currently less than 5 percent for Indian DC companies. This is projected to increase to 2025 percent by 2028,” the report said.
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Image Credit: KhasKhabar.