Data centre industry in India

Also Over-the-top media services in India, video streaming, online gaming, augmented reality and digital commerce are major factors of the developing industry.

[8] Mumbai has emerged as the third biggest data centre market in the Asia-Pacific region, with a total capacity at 2,337 MW and breaching the 2GW mark, in 2023, behind Shanghai and Tokyo.

[7] The Adani enterprises has signed an MoU with the Tamil Nadu government to set up a data centre in Chennai, with an investment of Rs 2,500 crore.

[10] Due to its IT presence, Hyderabad consists the data centre industry with 6% market share, capacity of 38 MW and 0.71 million sq ft area.

Having IT industry in its main economy, Pune consists data centres with total capacity of 32 MW and 0.44 million sq ft with a 5% market share.

[7] Kolkata is the only data centre hub in the East India and second biggest in indian subcontinent region with a total capacity of 67 MW and 1.2 million sq ft with a significant market share.

The Adani Enterprise has taken a 51.8 acre plot in the Silicon Valley Hub, New Town to build a hyperscale data centre with ₹10,000 crore investment.

[12] In 2024, India's data centre industry is experiencing rapid growth, driven by increased digitalisation, rising internet penetration, and the government's push towards digital initiatives.

The industry is expected to reach a market size of $5 billion by the end of 2024, reflecting a compound annual growth rate (CAGR) of around 25% over the past few years.

Significant investments from both domestic and international players are enhancing the country's data infrastructure to meet the growing demand for storage and processing capabilities.

Major global tech companies like Amazon Web Services, Microsoft, and Google are collectively investing over $2 billion in expanding their data centre footprints in India, contributing to the industry's rapid expansion.

By introducing favourable policies and incentives, such as the Digital India program and data localisation mandates, the government is creating a conducive environment for investment.

Additionally, there will be a stronger emphasis on sustainability, with data centres increasingly adopting green technologies and practices to minimize their environmental impact.

This focus on sustainable development will be crucial as the industry scales up to meet the future digital needs of the country, with renewable energy sources expected to power at least 50% of data centres by 2030.