Data centres in India attract investment of $10 bn

Investments in data centres in India have totaled US$ 10 billion (about Rs 81,247 crore) since 2020 as demand for such facilities has increased due to a rapid increase in data consumption, according to a report by Colliers India.

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Property consultant Colliers India has estimated that investments in data centres in the country amounted to US$ 10 billion since 2020, due to a sharp growth in data consumption. The report, titled ‘Data Centre: Scaling up in Green age’, has predicted that India’s data centre stock would likely double to about 20 million square feet by 2025 from its current capacity of 10.3 million square feet in its report titled “Data Center: Scaling up in Green age.”

Currently, India’s top seven cities — Mumbai, Delhi-NCR, Bengaluru, Chennai, Hyderabad, Pune, and Kolkata — collectively have about 770 MW of data center capacity.

“The growth of data centres in India is led by massive explosion of data consumption through digitisation, increased cloud adoption, etc. over the last two years. At the same time, data center operators are enthused by the incentives such as subsidised land, stamp duty exemption etc. provided by several states,” the statement said.

Mumbai has the highest percentage of data centres (49) thanks to the availability of a landing station and submarine cable connectivity. Bengaluru is second in terms of data centre capacity, with Delhi-NCR holding about 17% of the total. Investments in the sector have increased over the past two to three years as a result of rising data consumption and favorable government policies.