India's Data Centers to Expand Capacity
ECONOMY & POLICY

India's Data Centers to Expand Capacity

India's data center industry is set to add 500 MW of capacity over the next four years, according to a report by Avendus Capital. This significant expansion is driven by the growing demand for digital services, cloud computing, and data storage, as the country increasingly moves towards a digital economy.

The report highlights that the expansion in data center capacity is essential to meet the surging demand from sectors such as IT services, e-commerce, telecommunications, and digital entertainment. The ongoing digital transformation across various industries in India is creating a robust need for advanced and reliable data infrastructure.

Data centers are becoming the backbone of India's digital infrastructure, providing the necessary support for the vast amounts of data generated by businesses and consumers. The growth of cloud computing, the Internet of Things (IoT), and artificial intelligence (AI) are further accelerating the need for scalable and efficient data storage solutions.

Investment in data center infrastructure is also being fueled by the increasing focus on data sovereignty and security. As more companies seek to localize their data storage in compliance with regulatory requirements, the demand for domestically located data centers is on the rise. This trend is encouraging both domestic and international players to invest in India's data center market.

Avendus Capital's report indicates that the 500 MW of additional capacity will be spread across key data center hubs in India, including Mumbai, Chennai, Bengaluru, and Hyderabad. These cities are strategically chosen due to their strong connectivity, availability of skilled labor, and proximity to large consumer bases.

The expansion of data center capacity is not just about meeting current demand but also about future-proofing India's digital infrastructure. With the ongoing roll-out of 5G technology and the anticipated growth in data consumption, having a robust data center network will be crucial to sustaining economic growth and innovation.

The investment required to add this capacity is substantial, with players in the industry expected to inject significant capital into new facilities, technology upgrades, and energy-efficient solutions. The push towards green data centers, powered by renewable energy, is also gaining traction, aligning with global sustainability goals.

This expansion is expected to create a positive ripple effect across the economy, generating employment opportunities and fostering the development of ancillary industries such as construction, logistics, and power supply. It will also enhance India's position as a global hub for data services, attracting further foreign direct investment (FDI) into the technology sector.

In conclusion, the addition of 500 MW of data center capacity in India over the next four years marks a critical phase in the country's digital transformation journey. As highlighted by Avendus Capital, this expansion is set to support the growing digital economy, enhance data security, and drive innovation across various sectors. With the backing of significant investments and strategic planning, India's data center industry is poised to play a pivotal role in shaping the future of technology and digital services in the country.

India's data center industry is set to add 500 MW of capacity over the next four years, according to a report by Avendus Capital. This significant expansion is driven by the growing demand for digital services, cloud computing, and data storage, as the country increasingly moves towards a digital economy. The report highlights that the expansion in data center capacity is essential to meet the surging demand from sectors such as IT services, e-commerce, telecommunications, and digital entertainment. The ongoing digital transformation across various industries in India is creating a robust need for advanced and reliable data infrastructure. Data centers are becoming the backbone of India's digital infrastructure, providing the necessary support for the vast amounts of data generated by businesses and consumers. The growth of cloud computing, the Internet of Things (IoT), and artificial intelligence (AI) are further accelerating the need for scalable and efficient data storage solutions. Investment in data center infrastructure is also being fueled by the increasing focus on data sovereignty and security. As more companies seek to localize their data storage in compliance with regulatory requirements, the demand for domestically located data centers is on the rise. This trend is encouraging both domestic and international players to invest in India's data center market. Avendus Capital's report indicates that the 500 MW of additional capacity will be spread across key data center hubs in India, including Mumbai, Chennai, Bengaluru, and Hyderabad. These cities are strategically chosen due to their strong connectivity, availability of skilled labor, and proximity to large consumer bases. The expansion of data center capacity is not just about meeting current demand but also about future-proofing India's digital infrastructure. With the ongoing roll-out of 5G technology and the anticipated growth in data consumption, having a robust data center network will be crucial to sustaining economic growth and innovation. The investment required to add this capacity is substantial, with players in the industry expected to inject significant capital into new facilities, technology upgrades, and energy-efficient solutions. The push towards green data centers, powered by renewable energy, is also gaining traction, aligning with global sustainability goals. This expansion is expected to create a positive ripple effect across the economy, generating employment opportunities and fostering the development of ancillary industries such as construction, logistics, and power supply. It will also enhance India's position as a global hub for data services, attracting further foreign direct investment (FDI) into the technology sector. In conclusion, the addition of 500 MW of data center capacity in India over the next four years marks a critical phase in the country's digital transformation journey. As highlighted by Avendus Capital, this expansion is set to support the growing digital economy, enhance data security, and drive innovation across various sectors. With the backing of significant investments and strategic planning, India's data center industry is poised to play a pivotal role in shaping the future of technology and digital services in the country.

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?