Data Centre Boom: India's Capacity to Double by 2026

Data centre capacity in India is set to double from 853 MW in 2023 to 1,645 MW by 2026, driven by the increasing adoption of Artificial Intelligence (AI). This expansion will require an investment of USD 5.7 billion and demand for 10 million sq ft of real estate space.

Data centre (DC) capacity is projected to increase nearly 800 MW by 2026, requiring an investment of USD 5.7 billion, according to JLL India.

Real estate consultant JLL India is projected to increase from 853 MW in 2023 to 1,645 MW by 2026.

''This expansion will drive a demand for 10 million sq ft of real estate space, attracting investments worth USD 5.7 billion,'' JLL said in a statement on Friday. The surge is primarily fuelled by the increasing adoption of Artificial Intelligence (AI), the consultant added.

The demand for Indian DCs is expected to be 650-800 MW during 2024-26.

''The exponential growth in processing power and data volumes, driven by AI, necessitates the development of new data centres capable of meeting energy, processing, and cooling needs,'' said Rachit Mohan, APAC Lead, Data Centre Leasing; and Head, Data Centre Advisory, India, JLL.

The anticipated expansion and progression of diverse AI disciplines are projected to create additional demand for data centres, expanding their capacity requirements and advancing their capabilities, he added.