BLURB: ‘This rapid expansion is set to attract a staggering investment of approximately Rs 1.5 lakh crore over the coming years’
MUMBAI
India is on the verge of a digital revolution, with its data center capacity expected to skyrocket to 4 gigawatts by 2030.
According to a new report by CareEdge Ratings, this rapid expansion is set to attract a staggering investment of approximately Rs 1.5 lakh crore over the coming years.
Currently, India’s capacity sits at around 1.2 gigawatts, accounting for roughly 4% of the global market. While these numbers are growing, the amount of data space available per million internet users in India is still far below the global average. This gap signals a massive opportunity for future development as more people go online and businesses embrace the cloud.
Experts point to several key drivers behind this surge: a massive increase in digital activity, lower operational costs, and the rapid adoption of Artificial Intelligence (AI). While traditional cloud storage and corporate IT services are leading the charge today, AI is expected to be the main engine fueling the next phase of growth. In fact, the industry has already seen its capacity double between 2022 and 2025.
However, the path forward isn’t without hurdles. Costs have jumped by 50 to 70 percent recently due to rising land prices and the need for advanced cooling systems. Investors are also putting more money into renewable energy to keep these centers sustainable. To succeed, experts say India must focus on building stronger power grids and managing project timelines efficiently to meet the world’s growing hunger for data.