With 138 data centers, India is currently the world’s 13th-largest market. And 45 new data centers—covering 13 million sq. ft and 1,015 MW of capacity, are expected to pop up by the end of 2025, per research by ANAROCK-Binswanger.
The enormous number of internet users using active mobile data via connected devices is expected to grow exponentially in the coming years. Continued internet penetration is expected with the Government of India supporting public investment in large-scale digitalization with its ‘Digital India‘ scheme and the transition of telecommunications providers (telcos) to high-speed 4G LTE and the soon-to-come 5G wireless technologies. CRISIL, the rating agency, predicts that by 2025, India’s data center capacity will have doubled to between 1,700 and 1,800 MW. An estimated 870 MW is the current capacity in the nation. The agency estimates that between 2023 and 2025, India will add between 890 MW and 900MW of capacity.
The cities from India which are prominent on the data center investors list are Mumbai Bangalore, Noida, Chennai, Hyderabad, Pune, and Kolkata. According to the Knight Frank Data Center report for the first quarter of 2023 on Asia Pacific, Mumbai saw the most significant expansion in capacity this quarter, with total market capacity surpassing the 2,000MW mark. Over 328MW of capacity was added, driven by announcements from existing players and a new market entrant, Digital Edge, a Stonepeak-backed operator set to deliver a hyperscale facility. The Mumbai market had witnessed substantial capacity absorption in the previous quarters, with over 40% of the market’s present live capacity being consumed throughout 2022. The report covered nine key markets in the APAC region: Shanghai, Tokyo, Mumbai, Sydney, Seoul, Singapore, Hong Kong, Bangkok, and Kuala Lumpur.
Apart from Mumbai, Chennai, and Bangalore are also expanding their capacity. 60% of the total data centers in India are in Mumbai, Chennai, Delhi, and Bangalore. India’s data center capacity is expected to double to 1318 MW by 2024 and 183 data centers by 2025.
The value of the India data center market is expected to increase from $4.35 billion in 2021 to $10.09 billion by 2027 at a compound annual growth rate (CAGR) of 15.07% throughout 2022-2027.