ICRA projects India’s Third-party data centre capacity to double by FY28

India’s digital backbone is set for a major boost as third-party data centre capacity is projected to double to 2,400 to 2,500 MW by FY28 from 1,250 MW in FY2025, supported by investments of nearly Rs 90,000 crore during FY 26-FY28, according to rating agency ICRA.

- TBG NETWORK

The rating agency said the planned expansion is part of a larger roadmap, with industry players announcing long-term development of 3.0 GW to 3.5 GW over the next 7 to 10 years. This would entail an outlay of Rs 2.3 to Rs 2.5 lakh crore, underlining the sector's vital role in India’s digital transformation journey.Mumbai continues to dominate the domestic data centre ecosystem, contributing over half of the existing operational capacity and ranking 21st globally. The city's robust power infrastructure, strategic location and proximity to cable landing stations have made it a preferred destination for operators, noted ICRA.India currently accounts for around 3 per cent of the global data centre capacity of 42 GW, compared to the United States 50 per cent share. However, the