AI adoption and regional data rules are driving a surge in India’s data centre investments, with global and local firms planning over $50 billion in the next five to seven years. Capacity is set to rise from 1 GW to 9 GW, supported by cheap power,...
Demand for digital infrastructure fuelled by AI and regional data protection laws have unleashed a new wave of investments in India’s data center industry. Global hyperscalers and Indian conglomerates are set to invest more than $50 billion in the next five to seven years in the domestic data centre industry, taking total capacity to about 9 gigawatts (GW) from 1 GW now. Long seen as an undervalued market, India is now emerging as one of the world’s most attractive data centre destinations because of cheap power, rapid capacity build-out and unmatched engineering talent. Besides, data consumption in India has zoomed from 8 exabytes in FY17 to 229 exabytes in FY25, led by OTT platforms, digital payments, social media and ecommerce.
The data law and expected AI adoption could be the next big levers for data centre growth in India.
