Indian Data Centre Capacity To Reach Four Gigawatts By FY30
ECONOMY & POLICY

Indian Data Centre Capacity To Reach Four Gigawatts By FY30

A report by CareEdge Ratings said Indian data centre capacity was expected to reach four gigawatts (GW) by FY30, supported by an underlying investment potential of Rs one point five trillion (tn) over the next five years. The report noted that co-location capacity had doubled to one point two gigawatts between FY22 and FY25. It added that tenants were likely to spend nearly double on IT equipment, taking total investment potential to between Rs three trillion and Rs four trillion.

The study cited lower land and power costs relative to global peers and a maturing digital ecosystem as key competitive advantages. It observed that long-term contracts provided revenue visibility and promoted customer stickiness, supporting large capital outlays. The sector was therefore reported to be attracting both domestic and international investors.

Absorption levels were said to remain above ninety per cent, driven by hyperscale cloud providers, enterprise clients and the banking, financial services and insurance segment. The report projected a revenue compound annual growth rate of twenty four per cent for FY26 to FY30 with steady state margins of between forty per cent and forty two per cent. Analysts indicated that AI led demand would accelerate growth, contingent on graphics processing unit (GPU) availability.

The study warned of rising operational costs that had increased between fifty per cent and seventy per cent owing to higher land prices and advanced cooling technologies. It cited stretched commissioning timelines due to scope changes and clearance delays, which would require stronger project management and cash flow resilience. Providers were reported to be adopting renewable energy and green practices to improve power usage effectiveness despite higher upfront investments.

The assessment presented a positive outlook provided power infrastructure and commissioning efficiency improved to match demand. It concluded that managing costs, timelines and energy sourcing would be essential to realise the projected expansion.

A report by CareEdge Ratings said Indian data centre capacity was expected to reach four gigawatts (GW) by FY30, supported by an underlying investment potential of Rs one point five trillion (tn) over the next five years. The report noted that co-location capacity had doubled to one point two gigawatts between FY22 and FY25. It added that tenants were likely to spend nearly double on IT equipment, taking total investment potential to between Rs three trillion and Rs four trillion. The study cited lower land and power costs relative to global peers and a maturing digital ecosystem as key competitive advantages. It observed that long-term contracts provided revenue visibility and promoted customer stickiness, supporting large capital outlays. The sector was therefore reported to be attracting both domestic and international investors. Absorption levels were said to remain above ninety per cent, driven by hyperscale cloud providers, enterprise clients and the banking, financial services and insurance segment. The report projected a revenue compound annual growth rate of twenty four per cent for FY26 to FY30 with steady state margins of between forty per cent and forty two per cent. Analysts indicated that AI led demand would accelerate growth, contingent on graphics processing unit (GPU) availability. The study warned of rising operational costs that had increased between fifty per cent and seventy per cent owing to higher land prices and advanced cooling technologies. It cited stretched commissioning timelines due to scope changes and clearance delays, which would require stronger project management and cash flow resilience. Providers were reported to be adopting renewable energy and green practices to improve power usage effectiveness despite higher upfront investments. The assessment presented a positive outlook provided power infrastructure and commissioning efficiency improved to match demand. It concluded that managing costs, timelines and energy sourcing would be essential to realise the projected expansion.

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