MINING MONEY

Data centres are burgeoning in metros and cities. There's big money here to be made

- Molly R

India's Data Centre (DC) Industry is all set for exponential growth, driven primarily by artificial intelligence (AI) and the nationwide rollout of 5G technology. According to JLL India, the DC industry is expected to add a staggering 604 MW capacity in the next two and a half years (H2 2024-2026). The growth is a testament to India's emergence as a global hub for AI innovation and data centre development.

“India is rapidly establishing itself as a global centre for AI innovation and data centre growth. Hyperscalers are increasingly pursuing self-build projects in major data centre hubs, while operators are planning new campuses powered by 400 kVA lines to support AI clusters. Navi Mumbai, a satellite city near Mumbai, is emerging as a key data centre location, with potential demand expected to reach 800 MW in next few years. The push for AI-ready infrastructure, combined with the transformative influence of 5G, is revolutionizing India’s digital ecosystem and positioning the country as a leader in technological advancements,” said Rachit Mohan, APAC lead — data centre leasing, JLL.

Devi Shankar, executive director, industrial, logistics & data centres, Anarock Capital, says, “This surge is underpinned by rising internet penetration, which has risen from 33.4% in 2019 to 55.2% in 2024), a near-doubling in data consumption per user from 11.5 GB to 21.1 GB/ month, and an explosion in average traffic per smartphone, which grew from 13 GB to 32 GB. India now leads globally in average mobile data traffic per smartphone, and just this fact alone has had a palpable impact on the demand for high grade data centres in the country. India's booming digital engagement is a direct indicator of future DC demand.”

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