Data centre revenue likely to grow 20-22% by FY28

INDIA'S DATA CENTRE operators are projected to generate around ₹20,000 crore in annual revenue by FY28, reflecting a compound annual growth rate of 20-22% between FY26 and FY28, ratings agency Crisil said in a recent report.

- URVI MALVANIA

The surge is being driven by rising enterprise cloud adoption, AI-led workloads and growing digital consumption among retail users, it added.

To keep pace, industry capacity is expected to more than double to 2.3-2.5 GW by March 2028, with 1.1-1.3 GW of incremental supply likely to come online over FY26-FY28. This expansion is underpinned by rapid migration to public cloud, increased investments in high-density AI infrastructure and the rollout of 5G, which is fuelling demand for lowlatency applications such as streaming, gaming and internet-of-things services.