India's Data Centre Boom: A $60,000 Crore Investment Surge

India's data centre industry is set to double its capacity, with an expected investment of Rs 55,000-60,000 crore from FY2026 to FY2028. Revenue is projected to reach Rs 20,000 crore annually by 2028, driven by digital adoption and AI and 5G technology advancements, according to Crisil.

Data centres in India are poised for significant growth, with investments amounting to Rs 55,000-60,000 crore targeted for FY2026 to FY2028. Crisil, a credit rating agency, announced on Tuesday that this infusion would double capacity to between 2.3 and 2.5 gigawatts.

According to Crisil, the revenue for India's third-party data centre operators is expected to hit around Rs 20,000 crore annually by fiscal 2028. This translates to a strong annual growth rate of 20-22%, driven by increased digital technology usage by both enterprises and retail consumers.

Nitin Bansal, Crisil Ratings Associate Director, noted that while the required investment will involve substantial debt funding, the growth in Ebitda from operational capacities will maintain leverage stability. The industry's expansion is primarily driven by public cloud adoption, AI technology investments, and the rise of 5G.

(With inputs from agencies.)