New Delhi, India, will need an additional 1.7 to 3.6 GW of data center capacity by 2028, on top of the 2.32 GW of capacity already under construction and planning, to meet growing demand , according to Cushman & Wakefield.
Real estate consultancy Cushman & Wakefield on Wednesday published a report "Is India building enough to drive its digital transformation?"
The report conservatively estimates the potential data center capacity that India will need to align with other major economies. Additional data center capacity of 1.7-3.6 GW will be needed, in addition to the planned development of 2.32 GW of Colo capacity.
At the end of 2023, India's colocation data center (Colo) installed capacity was 977 MW (IT load). In 2023, around 258 MW were installed in its seven major Indian cities.
This is a formidable figure and surpassed the capacity addition in 2022, which stood at 126 MW, according to the report.
The consultant noted that, with more than 19 GB, Indians have been the highest data consumers per month among comparable countries.
Despite this, India today lags in terms of internet and smartphone penetration, reflecting the scale and scope towards which the data center segment is heading.
Colo's additional capacity currently under construction in India is 1.03 GW by 2024-2028, with an additional 1.29 GW planned, taking the total projected capacity to 3.29 GW by 2028.
This exponential growth is driven by a confluence of factors, including a significant increase in data consumption driven by increasing digital penetration and the adoption of data-intensive technologies, the consultant said.
Notably, more than 90 per cent of this supply is concentrated in key markets, including Mumbai (which is a clear leader), Chennai, Delhi NCR and Hyderabad, which is rapidly emerging as India's new data center hub.
The report highlighted the huge under-penetration of data centers in India and that there is a need to significantly increase investments to add more projects in the pipeline.
This increase in investment is also relevant considering the growing demand for Artificial Intelligence (AI), which is expected to further increase the overall demand for data centers in India.
The report has employed two distinct approaches to assess India's potential data center capacity.
Comparing key metrics (mobile data consumption and number of internet users) with other nations highlights that India is far from reaching an oversupply situation, but rather very underpenetrated, the consultant said.
Vivek Dahiya, Managing Director and Head of Asia Pacific Data Center Advisory Team, added: "India's data center industry has witnessed exponential growth in recent years. This is driven by rapid expansion, especially post-Covid, in digital penetration and adoption levels of new-age technologies including 5G, cloud computing, IoT and generative AI.”
This report, he said, has highlighted India's untapped potential in the data center space.
"We believe India needs about 5 GW to 6.9 GW of total installed capacity to achieve healthier rates. This requires commissioning of 1.7 to 3.6 GW of additional projects beyond those under construction or planned "Dahiya said.
He anticipated this growth trajectory to continue and expects both existing players to expand and new entrants to join the market in the short to medium term.
Real estate consultancy Cushman & Wakefield on Wednesday published a report "Is India building enough to drive its digital transformation?"
The report conservatively estimates the potential data center capacity that India will need to align with other major economies. Additional data center capacity of 1.7-3.6 GW will be needed, in addition to the planned development of 2.32 GW of Colo capacity.
At the end of 2023, India's colocation data center (Colo) installed capacity was 977 MW (IT load). In 2023, around 258 MW were installed in its seven major Indian cities.
This is a formidable figure and surpassed the capacity addition in 2022, which stood at 126 MW, according to the report.
The consultant noted that, with more than 19 GB, Indians have been the highest data consumers per month among comparable countries.
Despite this, India today lags in terms of internet and smartphone penetration, reflecting the scale and scope towards which the data center segment is heading.
Colo's additional capacity currently under construction in India is 1.03 GW by 2024-2028, with an additional 1.29 GW planned, taking the total projected capacity to 3.29 GW by 2028.
This exponential growth is driven by a confluence of factors, including a significant increase in data consumption driven by increasing digital penetration and the adoption of data-intensive technologies, the consultant said.
Notably, more than 90 per cent of this supply is concentrated in key markets, including Mumbai (which is a clear leader), Chennai, Delhi NCR and Hyderabad, which is rapidly emerging as India's new data center hub.
The report highlighted the huge under-penetration of data centers in India and that there is a need to significantly increase investments to add more projects in the pipeline.
This increase in investment is also relevant considering the growing demand for Artificial Intelligence (AI), which is expected to further increase the overall demand for data centers in India.
The report has employed two distinct approaches to assess India's potential data center capacity.
Comparing key metrics (mobile data consumption and number of internet users) with other nations highlights that India is far from reaching an oversupply situation, but rather very underpenetrated, the consultant said.
Vivek Dahiya, Managing Director and Head of Asia Pacific Data Center Advisory Team, added: "India's data center industry has witnessed exponential growth in recent years. This is driven by rapid expansion, especially post-Covid, in digital penetration and adoption levels of new-age technologies including 5G, cloud computing, IoT and generative AI.”
This report, he said, has highlighted India's untapped potential in the data center space.
"We believe India needs about 5 GW to 6.9 GW of total installed capacity to achieve healthier rates. This requires commissioning of 1.7 to 3.6 GW of additional projects beyond those under construction or planned "Dahiya said.
He anticipated this growth trajectory to continue and expects both existing players to expand and new entrants to join the market in the short to medium term.