Key trends to look out for in Data Centres in India

India’s data centre market continues to grow robustly, with the total capacity projected to rise to 2 GW by 2026.

- GNS News Agency, April 24

There is nearly 525 MW capacity under various phases of construction across top cities like Mumbai, Chennai, Hyderabad and Bengaluru.Cloud computing, technology advancements, 5G rollouts and the digitalisation of BFSI continue to be the growth drivers with artificial intelligence (Al) workloads to ramp this demand up further. These growth drivers are projected to push the India data centre market value to USD 11.6 billion by 2032.

Data centres have also emerged as an attractive asset class for institutional investors in the last few years, with a large capital pool being committed and deployed in this sector. The industry has seen advancements on various fronts and will continue growing exponentially in the next 2-3 years.Some of the key trends to look out for in 2025 and beyond:

Data centre operators are increasingly investing in large-scale projects with capacities of over 100MW, specifically in Navi Mumbai. Apart from Mumbai, Chennai is another preferred market for these operators to set up facilities. Hyderabad will also see significant hyperscaler capacity development in the next few years, with two major hyperscalers — each with 100-plus acres of land — having projects in various stages of development.With the increase in cloud computing and large-scale Al-led demand, the industry will see various large campuses to house this growing demand.Creation of New Availability Zones & Micro-markets