India’s data centre industry has seen a significant growth, with over $6.5 billion invested between 2014 and 2024, according to a report by ANARAOCK Capital. The industry has seen a 139% increase in capacity between 2019 and 2024, with a rise in internet penetration, data consumption per user, and average smartphone traffic.
Mumbai and Chennai dominate the data centre market, accounting for 70% of India’s total IT power capacity. Other key markets include Noida, Bangalore, Hyderabad, and Pune. The surge in demand for high-grade data centres is attributed to India’s booming digital economy.
India’s data centre industry is experiencing an unprecedented investment boom, with over $6.5 billion flowing into the sector in recent years, according to a report by ANAROCK. The rapid adoption of digital technologies, cloud computing, artificial intelligence, and the government’s push towards data localization are driving this massive expansion.
Growth Drivers Behind the Investment Surge
The increasing demand for data storage and processing capabilities has made India a prime hub for data centre investments. Several key factors are contributing to this surge:
- Digital Transformation – The exponential growth of digital services, including e-commerce, fintech, OTT streaming, and remote work, has amplified the need for robust data infrastructure. The nationwide expansion of 5G networks and the rising use of AI-powered applications require high-speed, low-latency data processing, increasing demand for advanced data centres.
- Government Policies and Data Localization – The Indian government’s push for data sovereignty and the implementation of the Digital Personal Data Protection Act have encouraged companies to set up localized data storage facilities. Leading global tech giants like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure are expanding their presence in India to cater to the country’s growing enterprise cloud needs.
- Sustainable and Green Data Centres – Investors are focusing on energy-efficient data centres, with increasing adoption of renewable energy sources to power these facilities.
Key Investment Hubs and Major Player The top investment destinations for data centres in India include Mumbai, Delhi-NCR, Bengaluru, Chennai, Hyderabad, and Pune. These cities offer robust connectivity, reliable power supply, and proximity to enterprise hubs.
- Reliance Jio – Expanding its data centre footprint with strategic partnership Major domestic and international investors driving the growth include Investing in hyperscale data centres across key cities. Developing some of India’s largest data centres. Creating world-class data storage infrastructure. AWS, Microsoft, Google, and Equinix are strengthening their Indian operations with new data centre campuses.
Sustainability and the Future of Indian Data Centres
With sustainability becoming a key focus, the industry is witnessing an increased shift towards green data centres. Companies are investing in solar and wind-powered data centres, water-efficient cooling systems, and carbon-neutral operations.
India’s data centre sector is on a remarkable growth trajectory, with over $6.5 billion in investments signaling its importance as a global digital powerhouse. As cloud adoption, AI, and 5G continue to expand, India is set to become one of the most crucial data centre markets worldwide. The future will see more sustainable, secure, and scalable data infrastructure, cementing India’s position in the global digital economy.
India’s data centre industry has witnessed over $6.5 billion in investments, driven by digital transformation, 5G expansion, and data localization policies, according to ANAROCK. Key cities like Mumbai, Delhi-NCR, Bengaluru, and Hyderabad are emerging as major hubs.
Leading players such as Reliance Jio, Adani, AWS, and Yotta Infrastructure are spearheading growth. The sector is also shifting towards green data centres, leveraging renewable energy. With rising India is poised to become a global data centre powerhouse, ensuring a sustainable and digitally empowered future.
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