India's Data Centres on the Rise: A $94 Billion Opportunity

India's data centre capacity surged by 260 MW, reaching 1.5 GW by September. Driven by digitalisation and AI investments, Mumbai leads with 53% of capacity. Government policies and cost-competitiveness attract investments, with USD 94 billion committed since 2019. Key locations include Maharashtra, Telangana, and Tamil Nadu.

India's data centre capacity has experienced remarkable growth, increasing by 260 MW to 1.5 GW by the end of September, according to a report by CBRE. This expansion comes amid concerns over the resource-hungry nature of data centres near major urban areas.

Mumbai emerges as a dominant player in the sector, accounting for 53% of the nation's capacity. The growth is attributed to rapid digitalisation, favourable government policies, and soaring investments in artificial intelligence (AI). Chairman Anshuman Magazine highlights that data localisation insistence is luring investors.

Since 2019, India has drawn investment commitments worth USD 94 billion, with Maharashtra, Telangana, and Tamil Nadu emerging as top destinations. Notably, the Tata Group plans to build 1 GW capacity. The country's cost-efficient environment, aided by low construction and electricity costs, enhances its global competitiveness.