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New Delhi [India]September 17th (ANI): India's data centre industry is experiencing massive growth over the next few years, and according to a Jeffries report, total capacity is expected to increase five times by 2030.
Increased data traffic, increased use of artificial intelligence (AI), lower latency needs, and regulatory drives for data localization will drive growth.
“It appears that the capacity of Indian data centres is set to jump from five times to 8GW by 2030 due to a surge in data traffic.”
The report highlighted the need for significant investments to expand this capacity. To set up a 1MW data center capacity in India, you will need a CAPEX of 4-5 million USD.
The industry will need US$30 billion to reach an incremental capacity that reached its 6.4GW target by 2030. In addition to this, lease revenue is expected to increase five times to US$8 billion by 2030.
The report states that the sharp rise in demand for Indian data centres is driven by a jump of 30 times the data traffic since fiscal 2017.
This traffic growth is supported by increasing internet penetration, increasing smartphone adoption, and the increasing popularity of OTT platforms, digital payments, and e-commerce.
Additionally, regulatory measures such as the Digital Personal Data Protection (DPDP) Act, 2023 and Reserve Bank of India (RBI) guidelines further support demand by promoting data localization.
Another major factor driving demand is the adoption of AI. AI servers require 5-6 times more power than non-AI servers and also require liquid cooling, further increasing the demand for data center infrastructure.
Currently, hyperscale cloud service providers (CSPs) account for 60% of data center clients, while the banking sector contributes about 17%.
India's colocation data centre capacity has already increased five times to 1.7GW, with occupancy levels rising at 97%. This indicates that demand is currently outweighing supply.
The report also noted that data center growth creates downstream opportunities in several related sectors.
Real estate can earn USD 6 billion, but electrical and power systems can see opportunities of USD 10 billion. Racks and fitouts could generate US$7 billion, US$4 billion cooling systems and US$1 billion network infrastructure.
Given the large investment requirements, access to capital is important for companies looking to scale in this market. (ani)
(This article is published through a syndicate feed. With the exception of headings, the content is published verbatim. The responsibility lies with the original publisher.)
