India’s data centre industry is gearing up for a massive boom, with experts predicting the total capacity will skyrocket fivefold to 8GW by 2030. This exciting growth comes straight from a fresh Jefferies report, highlighting how the sector is riding high on surging data needs and tech trends.
What’s driving this data centre expansion in India? For starters, data traffic has exploded 30 times since FY17, thanks to more people jumping online, smartphone use going through the roof, and the rise of streaming services like OTT platforms, digital payments, and e-commerce. Add to that the push for data localisation—rules like the Digital Personal Data Protection (DPDP) Act 2023 and RBI guidelines are making sure more data stays within India’s borders, boosting demand even further.
AI is another game-changer here. As artificial intelligence adoption picks up speed, AI servers guzzle five to six times more power than regular ones and need fancy liquid cooling setups. This means India’s data centres will have to scale up big time to handle the load.
Right now, the scene looks hot: colocation data centre capacity has already jumped five times to 1.7GW, with occupancy rates hitting a whopping 97%. That shows demand is racing ahead of supply, creating a real buzz in the market.
But this growth won’t come cheap. Building just 1MW of data centre capacity costs between USD 4-5 million in capex. To hit that extra 6.4GW by 2030, the industry needs a whopping USD 30 billion in investments. On the flip side, leasing revenues could multiply five times to USD 8 billion, making it a lucrative opportunity.
Who’s leading the charge? Hyperscale cloud service providers make up 60% of clients, while the banking sector chips in about 17%.
The ripple effects of this data centre boom in India will touch many areas. Real estate stands to gain USD 6 billion, electrical and power systems could see USD 10 billion in opportunities, racks and fitouts USD 7 billion, cooling systems USD 4 billion, and network infrastructure USD 1 billion. It’s set to create jobs and spark innovation across the board.
With such huge investments on the horizon, companies will need smart access to capital to keep the momentum going. India’s data centre revolution is just getting started—watch this space!
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