Data Centre (DC) Market will reach $20 billion by 2025 in India

According to a CBRE estimate, data centre (DC) investments in India are predicted to reach $20 billion by 2025. The need for DCs in India has increased as a result of the country’s expanding digitalization and robust government policy initiatives.

A multifold increase in data transmission and the demand for high-end servers has also been brought on by OTT, online gaming, rising smartphone usage, e-commerce, EdTech platforms’ online education programs, location-agnostic work, and advanced technologies like machine learning, 5G, blockchain, and artificial intelligence.

The paper states that India’s DC stock crossed 9 million square feet with a 600+ MW capacity in H1 2022. With more than 400 MW now being built throughout Indian cities, the DC capacity is anticipated to virtually treble by 2024. The supply expansion is anticipated to be led by Mumbai, then Bangalore, Chennai, and Delhi-NCR.

Bangalore came in second with an 18% stake in the pan-Indian DC stock market, followed by Mumbai (48%), Bangalore (18%), and Chennai (9%), which is currently one of the fastest-growing DC marketplaces in India. These three cities made up about 75% of India’s total DC footprint.

DC
credit: economictimes

The remaining 25% of the DC market in India was accounted for by Delhi-NCR, Pune, Hyderabad, and Kolkata.

According to the report, hyper-scale DCs had a share of investments that was almost 77% from 2018 to 2021; a similar trend was seen in H1 2022. The top states received the majority of the investments in hyper-scale DCs, with West Bengal leading with a share of 22%, followed by Uttar Pradesh (19%), Telangana (16%), and Tamil Nadu (8%).

However, of the investments in colocation DCs that were announced, more than half were spread across India, with the remaining half going to the important states of Tamil Nadu, Maharashtra, West Bengal, Uttar Pradesh, and Telangana.

In order to prepare for the future, the sector is concentrating on white space tactics, according to the research. The area designated in DCs for IT hardware, such as servers, storage, network equipment, racks, cooling units, and power distribution systems, is known as white space. Currently, white space makes up about 78% of all infrastructure investments made globally.

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