India's Data Center Boom: A Digital Revolution in the Making

India's data centre industry is poised for rapid growth, with capacity expected to reach 3 GW by 2030. Driven by increased data consumption, AI, and cloud adoption, the sector sees annual investments of USD 1-1.5 billion doubling soon. However, a supply gap of 1.5 GW by 2033 presents challenges.

India's data centre industry is on the cusp of significant expansion, driven by rising data consumption, AI integration, and a push for data localization. According to Avendus Capital's recent report, the country's data centre capacity, projected to hit 3 GW by 2030, underscores the sector's potential.

Annual investments in this domain are currently between USD 1-1.5 billion, with expectations to double in upcoming years. Despite an anticipated demand of around 6 GW by 2033, the supply is projected to fall short at 4.5 GW, highlighting a 1.5 GW gap that needs addressing.

Efforts to meet this increasing demand include the development of hyperscale-ready infrastructure and edge-ready capacity in emerging markets. Additionally, state government incentives such as subsidized land and electricity duty exemptions are crucial for capacity expansion. Established players and new entrants, like Anant Raj, are strategically positioning themselves to capitalize on these opportunities.

(With inputs from agencies.)