Funds flood into data centres

Data centres are rapidly growing in the country, attracting significant investments. Between 2019 and 2024, investors have committed $60 billion in investments in this sector. The report released by real estate consultant CBRE South Asia indicates that by the end of 2027, investments in data centres could exceed $100 billion. International companies, real estate developers, and private equity funds are showing keen interest in tapping into the opportunities in the Indian data centre market.

Among the states that have secured investment commitments are Telangana, Maharashtra, Tamil Nadu, Uttar Pradesh, and West Bengal. The report also mentions that by the end of 2025, India’s data centre capacity is expected to reach 2,070 megawatts. Currently, the capacity stands at 1,255 megawatts, and it is projected to reach 1,600 megawatts by the end of this year. In terms of the number of data centres, Mumbai leads, followed by Chennai, Delhi-NCR, and Bengaluru. Together, these cities account for 90% of the country’s total data centre capacity.

The report highlights factors such as rapid technological adoption, digital transformation, increased internet penetration, favourable policies, and AI-based data as key drivers of growth for data centres. It also notes that with growing digital usage, government support, and investments from both domestic and foreign investors, India’s data centre market is experiencing remarkable growth. CBRE Chairman Anshuman Magazine explained that demand is increasing from the BFSI, technology, and telecommunications sectors, while state-level policy incentives are further supporting this growth.