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

12 Jul 2024 CW Team

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.

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..