India’s data centre industry has seen a 139% increase in capacity from 590 MW in 2019 to 1.4 GW in 2024, driven by rising digital adoption and demand for cloud services. This growth is attributed to rising internet penetration, a near-doubling in data consumption per user, and an explosion in average smartphone traffic.
India now leads globally in average mobile data traffic per smartphone, impacting the demand for high-grade data centres. Indian Railways is working towards becoming a net-zero carbon emitter by replacing fossil fuels with renewable energy, expanding track electrification, shifting cargo and passengers from road to rail, and exploring hydrogen-powered trains.
The Coimbatore airport expansion is set to begin, with the Airports Authority of India (AAI) floating a tender for a 16.7 km precast boundary wall. Japan is set to build the world’s first 3D-printed train station in Wakayama Prefecture, while the Jamshedpur interstate bus terminal project is gaining momentum. Adani Energy Solutions Ltd has secured a ₹2,800 crore power.
Transmission project in Gujarat to supply green energy for Green Hydrogen and Green Ammonia production. RVNL has invited bids for the rehabilitation of Kolkata’s Bascule Bridge, estimated at ₹96.94 crore, with an 18-month completion timeline The Union Minister of Power and Housing reviewed Odisha’s power sector with senior state officials in Bhubaneswar.
Discussing fly ash utilization, capacity expansion, and transmission infrastructure. Kobelco Construction Equipment India (KCEI) has reached a significant production milestone by rolling out its 20,000th excavator at its plans two new metro corridors for Gurgaon, while the Noida Authority is laying the foundation stone for a 5.6 km.
Elevated road from Chilla in Delhi to Mahamaya Flyover in Noida. Tata Power has surpassed 1,50,000 rooftop solar installations across India, cementing its leadership as the nation’s No. 1 rooftop solar provider. The Highways (MoRTH) is responsible for the development and maintenance of National Highways and Expressways in India.
Hindustan Construction Company and Tata Projects have secured a ₹2,470 crore contract for the Bhivpuri Off-Stream Open-Loop Pumped Storage Project (PSP) in Karjat, Maharashtra. India’s data centre industry has experienced a remarkable surge, attracting over $6.5.
Billion in investments over the past decade, according to a recent report by ANAROCK Capital. This influx of capital has propelled the industry’s valuation to approximately $10 billion as of the 2023–24 fiscal year, generating around $1.2 billion in revenue during this period.
Geographical Concentration and Growth
The data centre landscape in India is predominantly concentrated in major urban centres, with Mumbai and Chennai leading the charge. Collectively, these two cities account for about 70% of the country’s total IT power capacity, with Mumbai alone contributing nearly half (49%). Between 2022 and capabilities in these regions.
Driving Factors Behind the Investment Boom
Several key factors have contributed to the substantial investment and growth in India’s data centre industry The rapid adoption of digital technologies across sectors has heightened the need for robust data infrastructure to support services such as e-commerce, online education, and digital banking.
- Government Initiatives: Policies promoting data localization and the Digital India campaign have created a conducive environment for data centre expansion. The proliferation of technologies like artificial intelligence (AI), cloud computing, and the Internet of Things (IoT) has led to increased data generation, storage and processing facilities.
Experts anticipate that AI and the rise of sustainable and edge data centres will drive the next wave of demand in the sector. These developments are poised to further cement India’s position as a burgeoning hub for data centre operations, catering to both domestic and international markets.
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