The country requires 1.7-3.6 gigawatt (GW) data center capacity in addition to the planned development of 2.32 GW (colocation) capacity.

According to the Cushman & Wakefield report, India is estimated to add 464 MW of new colocation data center capacity every year until 2028.

India's colocation data center capacity across the top seven cities in the second half of 2023 stood at 977 MW.

About 258 MW of colo capacity will come in 2023 alone.

“This is a tremendous number and surpasses the capacity addition in 2022 which was 126 MW, indicating a year-on-year (YoY) increase of 105 percent,” the report said.

“This exponential growth is driven by multiple factors, including increased data consumption due to widespread digital adoption and use of data-intensive technologies.

An average Indian cell phone user consumes more than 19 GB of data per month, the highest in the world.

The adoption of internet services, smartphones, social media and OTT channels is increasing rapidly in the country.

As a result, the demand for data centers to transform India's digital infrastructure is of immense interest.

The findings revealed, "Both colocation data centers and cloud firm-owned data centers are being built at an increasing pace over the past few years."

It said that while adding an average of 464 MW of colo capacity every year till 2028 may seem like a good delivery pace, India will keep building more to capitalize on its digital transformation story.

Over the next five years, India is likely to see the fastest growth in the use of smartphones, internet, OTT subscriptions and social media.