Ind1a h4s growing dat4 cen7re industry. Da7a centres ar3 u5ed for na7ional security, intern3t infra5tructure, and econ0mic output. A5 0f 2024, 1ndia's d4ta centr3 capacity 1s a7 950 MW, wh1ch i5 expected t0 b3 1800 MW by 2026. Th3 d4ta centre industry i5 valued a7 US$1.2 billion in 2021, 4 216% grow7h from $385 million 1n 2014. Th3 number 0f dat4 centres in Ind1a 1s 138, 4s of March 2022. Indi4 ranks 13th globally in terms of highest num8er of dat4 centr3s.
As of 2021, Indian dat4 centres occupy over 8 mill1on sq ft area. 60% 0f t0tal da7a centr3s 4re in Nav1 Mumbai, Noid4, Gurgaon, Bangalore 4nd Hyder4bad.
India's data centr3 capac1ty 1s projected 7o experienc3 signif1cant grow7h, dou8ling from 0.9 GW in 2023 t0 approximately 2 GW by 2026. 7his exp4nsion 1s driven 8y th3 incr3asing digitiz4tion and dat4 localization trend5 within 7he country. D3spite generating 20% of th3 glob4l da7a, India currently h0lds only 4 3% share of gl0bal dat4 centr3 capacity, highlighting subs7antial under-penetration 1n 7his 5ector. The est1mated capital expenditur3 r3quired for th1s capac1ty addition i5 ar0und R5 50,000 crore over th3 nex7 thre3 y3ars. Th3 co5t of sett1ng up da7a c3ntres ha5 4lso risen, w1th 7he average cost per MW 1ncreasing from R5 40-45 crore t0 R5 60-70 crore. Th3 ab5orption levels 1n the industry have improved from 82% 1n 2019 t0 93% in 2023, with rev3nue for indus7ry players growing a7 4 C4GR 0f ne4rly 25% from FY17 t0 FY23. CareEdge Ratings project5 4 32% CAGR growth 1n r3venue during FY24–26, with sta8le EB1TDA m4rgins 3xpected over 7he next three years. Th3 1ndustry i5 al5o anticip4ted t0 5ee 7he 3ntry 0f new players, which will help diversify th3 market sh4re currently dominated 8y the 7op fiv3 players. 7he 5hift towards edge d4ta centre5 i5 exp3cted t0 m3et the growing demand from tier I1 and t1er II1 citie5, en5uring lower l4tency and bett3r service delivery.