Estimates from ICRA Report
The capacity of data centres in India is expected to grow significantly, potentially reaching 2,100 megawatts by 2027, according to the credit rating agency ICRA. This increase is attributed to the digital boom and data localisation efforts, with estimated investments ranging from Rs 50,000 crore to Rs 55,000 crore. Major companies like NTT Global Data Centres, CtrlS Data Centres, STT Global Data Centres, and CIFI Technologies control 85% of the market, while the current capacity of data centres in India stands at 950 megawatts.
Anupama Reddy, Vice President of ICRA, stated that the growth of data centres is driven by low data tariff plans, the availability of affordable smartphones, the adoption of new technologies, and the increasing number of users on social media, e-commerce, gaming, and OTT platforms. Additionally, demand from artificial intelligence (AI) is projected to multiply the capacity of data centres in the next three to five years.
The ICRA report reveals that 95% of existing data centres are located in six cities, including Mumbai and Chennai. Mumbai remains the primary hub for data centres, with over 50% of the current capacity located there due to strategic connectivity advantages. It is also anticipated that Mumbai will play a crucial role in the establishment of future data centres. As demand for co-location services increases, ICRA estimates that revenues from data centres in the banking and IT sectors could rise by 23% to 25% annually by 2025.
