India on Track to Become a Global Data Centre Hub by 2025
This will benefit the data center industry as it is set to witness exponential growth with demand likely to be 450 MW IT by 2025, stated Savills India. As for the year 2024, absorption of 407 MW IT capacity was recorded and added capacity of 191 MW IT was seen in the country due to rampant cloud computing, big data, Internet of Things (IoT), Artificial Intelligence (AI) and digital transformation.
Hyperscalers, BFSI (Banking, Financial Services, and Insurance), IT & ITeS, and service sectors are the demand drivers who are highly dependent on data center operators for colocation and ancillary services. This has given a massive land deal boost wherein over 200 acres have been bought in the cities of Mumbai, Hyderabad, Pune, Chennai, and Bengaluru in the year 2024 for expansion purposes.
According to Savills India's Director & Lead Data Centre Services, Srihari Srinivasan, the current momentum 'positions India as a promising global data centre hub'. He said that supply addition was expected to reach 600 MW IT by 2025.
This is also being driven by the increasing use of mobile apps as well as proliferation of 5G. The demand in Tier-II and Tier-III cities like Bhubaneswar, Patna, Lucknow, Jaipur, Kochi, Vizag, and Coimbatore is also growing. The dominant Tier-I cities continue to see robust growth.
"Srinivasan projects that the total data centre stock will reach 3,400 MW IT by 2030. This will be a testimony of the increasing stature of the country as a data centre hub.
