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
Infrastructure Urban

Designing Tomorrow: Amaravati’s Net Zero Landmark

Amaravati has achieved a defining landmark in India’s sustainable infrastructure journey with the inauguration of the APCRDA Project Office, the nation’s first government building to earn the IGBC Net Zero Energy Rating – Design Stage. Conceptualised by the Andhra Pradesh Capital Region Development Authority (APCRDA) and certified by the Indian Green Building Council (IGBC), the project exemplifies how governance, design and innovation can converge to deliver measurable environmental impact.A vision rooted in sustainabilitySet within a 4.3-acre site along the Seed Access Road in the Amar..

Next Story
Real Estate

Pidilite Elevates Construction with PPS

Pidilite Industries introduced Pidilite Professional Solutions (PPS) — a dedicated vertical for the construction and interiors ecosystem — at ACETECH Bengaluru 2025. Designed to empower architects, developers, contractors, and interior specialists, PPS delivers comprehensive support that extends far beyond products to ensure project excellence from concept to completion. Kavinder Singh, Joint Managing Director, Pidilite Industries, noted, “At Pidilite, we believe in enabling the construction fraternity to build boldly and sustainably. With Pidilite Professional Solutions (PPS),..

Next Story
Infrastructure Transport

Punjab, Centre Fast-Track Rajpura-Mohali Rail Line Development

The central government has fast-tracked the construction of the Rajpura-Mohali rail line to enhance connectivity in Punjab. This ambitious infrastructure project, aimed at improving transportation links between Rajpura and Mohali, has been identified as a key step in fostering regional economic growth. Union Minister for Railways, Ashwini Vaishnaw, announced the project’s acceleration during a recent assessment of the area. The rail line is expected to play a significant role in reducing travel time, promoting industrial growth, and boosting logistics efficiency in the region. The project,..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?