Data centre capacity to double in two years
Estimate by CRISIL ratings report
Data centres in the country are rapidly growing. According to CRISIL Ratings, their capacity is expected to double in the next two years, reaching 2.3 gigawatts by the end of 2026-27. Along with the expansion plans of companies already operating in this sector, the entry of new companies will also contribute to the increase in data centre capacity. The growing trend of digitalization and increased investments by companies in cloud storage are driving the demand for data centres. The report also highlights that the rapid adoption of generative AI is another factor contributing to the increasing demand for data centres.
Additionally, businesses’ preference for digital platforms in managing their operations is also boosting the demand for computing and storage facilities in data centres. The availability of high-speed data is further increasing the use of social media, OTT platforms, and digital payments. The report cites the 25% annual increase in mobile data traffic over the past five financial years as evidence of this trend. CRISIL Ratings estimates that monthly data consumption will reach 24 GB by March 2024, and will increase to 33-35 GB by March 2026.
To meet the growing demand for data centres, CRISIL Ratings’ Senior Director Manish Gupta stated that investments worth Rs 55,000-65,000 crore will be required over the next five financial years. The major expenses will be for land, buildings, electrical equipment, and cooling solutions, with at least 25% of the total investment expected to be allocated for these areas.
