India's data centre industry now worth Rs. 85,580 crore (US$ 10 billion), shows explosive growth
- IBEF
- March 25, 2025
India's data centre industry is now estimated to be worth Rs. 85,580 crore (US$ 10 billion), generating around Rs. 10,270 crore (US$ 1.2 billion) in revenue for FY24, according to an Anarock Capital report. The market is dominated by four major operators, responsible for 78% of the industry's revenue. Although operating profit growth levelled off after 2020, it is expected to increase by 50-55% as under-construction projects reach operational stability. Capital deployment has been robust, with Rs. 35,944 crore (US$ 4.2 billion) invested on the ground till FY24, split between Rs. 22,251 crore (US$ 2.6 billion) in equity and Rs. 20,539 crore (US$ 2.4 billion) in debt as of March 2024. The Indian data centre industry has attracted more than Rs. 55,627 crore (US$ 6.5 billion) in investments from private equity, joint ventures, and acquisitions over the past decade. The sector has experienced explosive growth, with total capacity expanding by 139% to 1.4 gigawatts (GW) in 2024 from 590 megawatts (MW) in 2019.
This rapid expansion is closely linked to India's rising internet penetration, which surged to 55.2% in 2024 from 33.4% in 2019. Concurrently, data consumption per user has nearly doubled, increasing to 21.1 GB per month from 11.5 GB. In comparison, average mobile data traffic per smartphone has more than doubled to 32 GB from 13 GB. These trends have fuelled demand for high-grade data centres. The industry is primarily concentrated in major cities, with Mumbai and Chennai accounting for about 70% of India's total IT power capacity and Mumbai alone contributing nearly half (49%). Other key markets include Noida (9%), Bengaluru (8%), and Pune (5%), contributing to an overall occupancy rate of 76%. The report also notes a surge in land acquisitions for hyperscale data centres, with nearly 440 acres acquired in the last five years. Hyderabad leads this trend, accounting for 69% of the land, followed by Mumbai (22%) and Pune (9%).
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
