India’s data centre capacity to jump 77%

Mumbai

India’s data centre industry is set for major expansion, with total capacity expected to grow 77% to 1.8 gigawatts (GW) by 2027, says a new report by JLL. The industry recently crossed the 1 GW mark in 2024, growing at an impressive 24% annual rate since 2019.

This surge is being driven by growing demand from cloud service providers and rapid developments in artificial intelligence (AI). As a result, India is emerging as a global leader in digital infrastructure.

Mumbai leads the way, holding 52% of India’s total data centre capacity. It is firmly established as the country’s data hub. Chennai is next with 21%, while Bengaluru and Hyderabad each account for 7% of the total.

JLL’s Rachit Mohan said India’s AI mission will encourage adoption across different sectors, supporting the country’s $1 trillion digital economy goal. India is expected to add 785 megawatts of new data capacity, backed by $5 billion in investment in both digital and real estate infrastructure.

However, the report also warns of some challenges. U.S. policies restricting the transfer of advanced technology may impact future growth. Still, the BFSI (banking, financial services, and insurance) and tech sectors are driving demand, contributing 18% and 12% of total usage.

In the second half of 2024, the sector grew sharply, with supply increasing by 51% year-on-year to reach 114MW. Government support and laws like the Digital Personal Data Protection Act are also expected to reshape data centre operations, especially for colocation providers.

Experts say India’s digital push is now set to transform its data landscape.