ICRA expects a six-fold increase in data centre capacity to 5,100-5,200 MW involving investments of Rs. 1.60 lakh crore to be added in the next six years supported by significant data explosion and favourable regulatory policy initiatives by both states and the Centre.
Consequently, India’s share in global installed capacity is expected to sharply increase to 15-17% by 2028 from around 4% (19 GW) as of 2022.
Majority of the upcoming investments are geared towards meeting high demand in co-location services. This will continue to be driven by hyperscalers and segments, which require strict data confidentiality like BFSI, IT/ITES etc.
Giving more insights, Ms. Anupama Reddy, Vice-President and Co-Group Head, Corporate Ratings, ICRA, said: “While cloud, 5G roll-out, machine learning and internet of things (IoT) are expected to generate enormous data and storage requirements, Generative AI-led high computing requirements present a new wave of demand for DC capacity and a significant opportunity for DC operators. Further, the data explosion is supported by adoption of new technologies, rapid rise in consumption of digital content, the Government’s continued thrust on e-Governance, increased penetration of e-commerce and digital financial transactions. This, along with favourable regulatory policies like the Digital Data Protection Bill, granting infrastructure status to data centres, dedicated policies and incentives by various state governments, are expected to boost DC investments in the country. Given these triggers, the impact of the relaxation with respect to cross border data transfer, provided in the new Digital Personal Data Protection Bill 2023 on demand for DCs in India, is expected to be low.” REGION-WISE DC CAPACITY (MW)
Source: ICRA
