Data centres to attract Rs 40-45K crore in 2025-27: ICRA

The data centre business in India is expanding, supported by internet/data usage and data localisation initiatives, asserted rating agency ICRA.

- TDG NETWORK

Rapid digitisation and favourable regulatory regime to propel demand for data centres in India.

ICRA expects India's data centre (DC) operational capacity to increase to 2,000-2,100 MW by March 2027 from around 1,150 MW as of December 2024, involving investment of Rs 40,000-45,000 crore in 2025-26 and 2026-27.

Further, established data centre players and new players, which have entered this sector in the last 3-4 years, have a development pipeline of 3.0-3.5 GW to be delivered in the next 7-10 years, involving significant investments of Rs 2.0-2.3 lakh crore.

Increasing broadband and mobile internet penetration, the government's focus on Digital India, accelerated adoption of cloud services, artificial intelligence (AI), and 5G, and the growth of social media, e-commerce, gaming, and OTT platforms are triggers behind the digital explosion in India.