India's Data Centres Drive Power Needs, $ 280 bn Investment Expected
POWER & RENEWABLE ENERGY

India's Data Centres Drive Power Needs, $ 280 bn Investment Expected

India has been experiencing a notable rise in its data centre capacity, primarily driven by strict data localization regulations established by the Reserve Bank of India (RBI). Analysts at Jefferies have projected robust growth for India's data centre sector, foreseeing a compound annual growth rate (CAGR) exceeding 50%. They anticipate that by 2030, the contribution of data centres to India's power demand will escalate to 6%, a significant increase from the current level of less than 1%.

The surge in India's data centre industry gained momentum initially in 2021 due to disruptions in HDFC-Mastercard's operations stemming from data centre outages. Jefferies analysts noted that India's data centre capacity is growing at a CAGR of over 50% and is expected to account for 6% of the country's power demand by 2030, up from less than 1%.

To meet this growing demand, investments in power generation, transmission, and distribution (T&D) are anticipated to increase substantially, reaching $ 280 billion from FY24E-30E, a 2.2-fold increase compared to FY17-23.

Globally, there has been a rapid increase in demand for colocation data centre space, yet new constructions have only partially satisfied this burgeoning demand. Jefferies emphasized that additional power generation and grid capacity will be necessary to meet the escalating demand for data centres, which has also contributed to rising rents for wholesale data centres.

In India, the expanding demand for data centres is expected to have a significant impact on the energy sector, prompting substantial investments in power generation and infrastructure. Key Indian companies identified as major beneficiaries of this growing data centre expenditure include Siemens, ABB India, Larsen & Toubro (L&T), KEI Industries, Voltas, and Bluestar.

India has been experiencing a notable rise in its data centre capacity, primarily driven by strict data localization regulations established by the Reserve Bank of India (RBI). Analysts at Jefferies have projected robust growth for India's data centre sector, foreseeing a compound annual growth rate (CAGR) exceeding 50%. They anticipate that by 2030, the contribution of data centres to India's power demand will escalate to 6%, a significant increase from the current level of less than 1%. The surge in India's data centre industry gained momentum initially in 2021 due to disruptions in HDFC-Mastercard's operations stemming from data centre outages. Jefferies analysts noted that India's data centre capacity is growing at a CAGR of over 50% and is expected to account for 6% of the country's power demand by 2030, up from less than 1%. To meet this growing demand, investments in power generation, transmission, and distribution (T&D) are anticipated to increase substantially, reaching $ 280 billion from FY24E-30E, a 2.2-fold increase compared to FY17-23. Globally, there has been a rapid increase in demand for colocation data centre space, yet new constructions have only partially satisfied this burgeoning demand. Jefferies emphasized that additional power generation and grid capacity will be necessary to meet the escalating demand for data centres, which has also contributed to rising rents for wholesale data centres. In India, the expanding demand for data centres is expected to have a significant impact on the energy sector, prompting substantial investments in power generation and infrastructure. Key Indian companies identified as major beneficiaries of this growing data centre expenditure include Siemens, ABB India, Larsen & Toubro (L&T), KEI Industries, Voltas, and Bluestar.

Next Story
Real Estate

Bennet & Bernard Unveil Dutch-Inspired ‘Casa El Toledo’ in Goa

Bennet & Bernard Group, Goa’s leading luxury real estate developer, has launched its newest project, Casa El Toledo, in Assagao. The enclave features 18 ultra-luxury 4 BHK Dutch-style villas blending European charm with tropical elegance. Each villa includes a private pool, double-height ceilings, open courtyards, alfresco dining areas, and English-inspired landscaping. The interiors are curated by noted Dutch designer Kelly Marie.   Reflecting the grandeur of the Dutch Golden Age, Casa El Toledo harmonises heritage aesthetics with modern sensibilities. Expansive interiors flow..

Next Story
Equipment

Godrej Delivers Heaviest Ecolaire Surface Condenser to US Project

Godrej Enterprises Group’s Process Equipment business has manufactured and delivered its heaviest Ecolaire® Surface Condenser to date, weighing nearly 450 metric tonnes, for a power-generation project in the United States. The project, powered by natural gas and partly designed for hydrogen compatibility, marks another step in advancing clean energy systems. Produced at the company’s GreenCo-certified Dahej facility in Gujarat, the equipment demonstrates India’s growing engineering capabilities and reinforces Godrej’s ‘Make in India for the World’ vision.  Hussain S..

Next Story
Infrastructure Energy

India, Brazil Discuss Energy Ties And Oil Investments

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri held discussions with Celso Luis Nunes Amorim, Special Advisor to the President of Brazil, and senior Brazilian officials to strengthen bilateral cooperation in the oil, gas, and energy transition sectors. The talks took place during a dinner hosted by Kenneth H da Nobrega, Ambassador of Brazil to India, at his residence in New Delhi.Mr Puri said the meeting focused on Indian investments in Brazil’s oil and gas sector, as well as expanding collaboration in energy transition and biofuels. “The enriching conversation revolved ar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?