Indian data center industry is poised to experience high growth, according to a report by property consultancy JLL India. Data center capacity in the country is expected to rise by 66% by 2026 and will attract investments of nearly US$4 billion. The new additions will bring about over 7.3 million square feet of new data center space across the country.
The reasons behind Indian data center development are the widespread AI adoption, cloud storage solutions, and the nationwide rollout of 5G technology. While building the country's digital infrastructure, India is witnessing a meteoric rise in demand for scalable and secure data centers. India is becoming a major player in the global digital economy with this insurgence.
According to Rachit Mohan, APAC Lead for Data Centre Leasing at JLL India, "The DC industry is expected to add a staggering 604 MW of capacity in the next two and a half years (H2 2024-2026). AI-driven infrastructure, coupled with 5G, is transforming India's digital landscape, and the country is well-positioned to lead the global tech race."
According to Samantak Das, Chief Economist at JLL India, "This growth will not only spur demand for specialised skills but also create opportunities across backward-linked industries, which will reinforce India's digital infrastructure."
Navi Mumbai is emerging as a prime data center hub. Soon, demand is likely to touch 800 MW in Navi Mumbai. In general, the Mumbai region will continue to lead. However, huge growth can also be expected in Chennai and other regions.
Growth OF Indian data centers industry is attracting global investors. Just last week, Colt DCS, a hyperscale data center operator, announced a strategic partnership with RMZ. The partnership aims to develop a digital infrastructure platform in India with US$1.7 billion of investment. This would further establish India as the hub for data centers across the Asia Pacific region.
Princeton Digital Group, the global data center operator, signed an agreement with Mindspace Business Parks REIT, backed by K Raheja Corp. The agreement is done with a focus to construct the company's largest data center campus in India at Mindspace Airoli West. It shows that confidence in Indian data center long-term growth prospects are high.
Indian data center industry will spur innovation and create jobs for futuristic digital transformation based on cloud computing, digital payments, e-commerce, including emerging AI technologies.
The growth of submarine cable infrastructure is also a factor for data center growth and development in the country. The submarine cable infrastructure is linking Mumbai and Chennai to other global hubs like Southeast Asia, Europe, and the Middle East. This will further make an investment in India's data center infrastructure more attractive.
A report by The Guardian has highlighted the high-level of pollution from data centers. The report stated that the emissions of Google, Microsoft, Apple, and Meta-controlled data centers amount to 662% higher than the actual claims. Read More
Thus, it remains to be seen whether Indians should rejoice with data centre development or whether they should be alarmed of its effects on the country’s environement.