India Emerging as a Global Data Centre Hub

CIOTechOutlook Team | Tuesday, 24 December 2024, 02:38 IST

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India has the capability to emerge as a global data centre hub due to its lower costs for construction, land, and power relative to other nations, along with a robust IT and digital services ecosystem. According to Cushman & Wakefield data, the increase in data centre capacity within the colocation sector is projected to be around 230 MW (IT load) by the conclusion of 2024, with an anticipated capacity addition in 2025 expected to match or exceed this figure.

In 2025, although most capacity expansion will take place in Mumbai, cities like Delhi-NCR, Kolkata, and Chennai are anticipated to experience considerable growth as well.

Cushman & Wakefield estimates that the average expense for building a data centre in India is around $6.8 million per MW of capacity, which is considerably less than in many APAC countries—Australia's cost is $9.17 million, while Japan's stands at $12 million. The report indicated that three key undersea data cable projects arriving in Mumbai might be finalized by 2025, thus aiding in establishing India's financial capital as a regional data center hub.

“We have been witnessing a consistent rise in annual capacity addition, much in line with the surge seen in data consumption in the country. For 2025, given the number of greenfield projects under construction, the momentum in capacity addition looks intact. We foresee next year adding 250 MW of Colo IT load, which would then bring the pan-India installed capacity to 1.46 GW by the end of 2025,” the company’s spokesperson said.

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