India is rapidly establishing itself as a global hub for data centres, with significant growth anticipated in the coming years. A report titled “India Data Centre Market Report 2024” released on Friday predicts that in 2025, the country will face a demand for over 450 megawatts (MW) of IT capacity across its major cities, while the supply is expected to exceed 600 MW. This surge in demand is driven by factors like the growing use of cloud computing, the expansion of big data, IoT, Artificial Intelligence (AI), and the continued rise of e-commerce and digital transformation efforts.
From 2024 to 2030, the data centre market in India is expected to grow at an impressive compound annual growth rate (CAGR) of 21%, reaching 3,400 MW of IT capacity by 2030, according to Savills India, a global real estate advisory firm. In 2024 alone, India absorbed 407 MW of IT capacity, while adding 191 MW across key cities.
The increasing need for data centres is being fueled by a variety of sectors, including hyperscalers, banking and financial services (BFSI), IT and ITeS, and other service industries. These sectors are heavily dependent on data centre operators for colocation and related services. Mumbai has led the charge in data centre absorption, accounting for 53% of the total absorption, followed by Hyderabad with 14%, and Chennai and Pune each contributing 10%.
Along with rising demand, there has also been a notable increase in data centre land transactions. Operators and hyperscalers are acquiring land in major cities to support their expanding operations. In 2024, over 200 acres of land were acquired in cities such as Mumbai, Hyderabad, Pune, Chennai, and Bengaluru.
The rise in mobile applications and the widespread adoption of 5G technology are driving the demand for edge data centres in Tier-II and Tier-III cities like Bhubaneswar, Patna, Lucknow, Jaipur, Kochi, Vizag, Coimbatore, Madurai, Raipur, and Hubli. Despite this expansion, major cities like Mumbai, Chennai, Hyderabad, and Pune continue to lead the supply and absorption trends. By 2030, India’s data centre stock is projected to reach 3,400 MW across these cities, with demand showing no signs of slowing down.
Source: Savills India, “India Data Centre Market Report 2024”
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