Data centre market continues to grow; 191 MW IT capacity addition in 2024: Report

India's data centre market continued its growth during 2024, with an addition of 191 MW IT capacity during last year, while absorption was 407 MW, according to Savills. In a statement on Friday, real estate consultant Savills India noted that the demand for data centres in India continues to rise, driven by factors like the increasing adoption of cloud computing, the expansion of big data, the Internet of Things (IoT), artificial intelligence (AI), and the rapid growth of ecommerce and digital transformation initiatives.

"In 2024, India witnessed an absorption of 407 MW IT capacity and the addition of 191 MW IT capacity across key cities," the consultant said.

Savills highlighted that this demand was fuelled by hyperscalers, BFSI (Banking, Financial Services, and Insurance), IT & ITeS, and service sectors, all of which heavily rely on data centre operators for colocation and related services.


The operational capacity stood at 1,110 MW IT as of 2024, reflecting a CAGR (compounded annual growth rate) of 22 per cent since 2014.

"India is experiencing a surge in data centre land transactions, driven by growing demand and expansions by data centre operators and hyperscalers acquiring land across key cities. In 2024, over 200 acres of land were acquired in Mumbai, Hyderabad, Pune, Chennai and Bengaluru," the consultant said.