Data Centre Capacity in Colocation Space to Grow by 230 MW in 2024

25 Dec 2024 CW Team

Data centre capacity in the colocation space is projected to increase by around 230 MW (IT load) by the end of 2024, with similar or even higher growth expected in 2025, according to data from Cushman & Wakefield.

In 2025, while the majority of the capacity expansion will take place in Mumbai, other cities such as Delhi-NCR, Kolkata, and Chennai are also set to experience substantial growth.

India has the potential to emerge as a global data centre hub, driven by lower construction, land, and power costs compared to other countries, along with a well-established IT and digitally enabled services ecosystem. Cushman & Wakefield estimates that the median cost of building a data centre in India is $6.8 million per MW of capacity, considerably lower than many other APAC countries—Australia stands at $9.17 million, while Japan is at $12 million.

The report further mentioned that three major undersea data cable projects, landing in Mumbai, are expected to be completed by 2025, which could solidify Mumbai's position as a regional data centre hub.

"We have witnessed a steady increase in annual capacity addition, aligning with the surge in data consumption across the country. For 2025, considering the number of greenfield projects underway, the momentum for capacity addition remains strong. We expect 250 MW of IT load capacity in colocation, which will raise the total pan-India installed capacity to 1.46 GW by the end of 2025," stated a company spokesperson.

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