JLL, a renowned global commercial real estate and investment management company, has revealed that India’s Data Centre (DC) Industry is all set for exponential growth, driven primarily by artificial intelligence (AI) and the nationwide rollout of 5G technology. According to JLL India, the DC industry is expected to add a staggering 604 MW capacity in the next two and a half years (H2 2024-2026).
In a press release JLL India said that the DC industry had already reached a capacity of 917 MW with an impressive 873 MW occupancy, indicating extremely tight market conditions. Over the past four and half years (2019-H1 2024), the sector has expanded 2.5 times, growing at a remarkable 24 percent Compounded Average Growth Rate (CAGR). It expects the growth to be fuelled further by significant government initiatives, including the approval of a USD 1.24 billion investment in AI infrastructure. Additionally, 5G network coverage is estimated to have reached over 90 percent of India’s population by the end of 2023.
“India is rapidly establishing itself as a global centre for AI innovation and data centre growth. Hyperscalers are increasingly pursuing self-build projects in major data centre hubs, while operators are planning new campuses powered by 400 kVA lines to support AI clusters,” said Rachit Mohan, APAC Lead – Data Centre Leasing, JLL. He further said, “Navi Mumbai, a satellite city near Mumbai, is emerging as a key data centre location, with potential demand expected to reach 800 MW in next few years. The push for AI-ready infrastructure, combined with the transformative influence of 5G, is revolutionizing India’s digital ecosystem and positioning the country as a leader in technological advancements.”
Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL said, “The future expansion of DC industry till 2026 will require approximately 7.3 million sq. ft of real estate and a capital investment of USD 3.8 billion. Mumbai is expected to maintain its market leadership, while we anticipate significant growth in Chennai and other regions. This expansion is not only driving demand for specialized skills but also creating opportunities across backward-linked industries.”
These findings and projections are not isolated. Other industry watchers and research organizations have also expressed enthusiasm surrounding India’s data center industry. In its report titled Is India Building Enough to Power its Digital Transformation, Cushman & Wakefield finds that by 2028, India will have 3 times the installed capacity, with a total IT load of 3.29 GW. Similarly, Investment Information and Credit Rating Agency (ICRA), an affiliate of Moody’s, expects India’s operational data center capacity to more than double to 2,000-2,100 MW by FY2027. ICRA estimates that this would involve investment worth Rs. 50,000-55,000 crore (~US$ 5.9 – 6.5 billion).
