India: Data Centre Enterprises Continue to Invest

In Line With the Increased Demands of New Technologies Such as Cloud and AI Services, India is Currently Experiencing Unprecedented Digital Growth
Amid Rising Demand for New Technologies like AI, Digital Transformation has Rapidly Grown Across India and Prompted Data Centre Businesses to Invest

India’s data centre industry is only continuing to grow in 2024. The country’s digital transformation efforts have rapidly accelerated, which could bring plenty of benefits to its economy.

As of 2021, data centres across India occupied more than 8 million sq ft in space, with 60% of the total data centres located in Mumbai, Chennai, Delhi and Bangalore. Mumbai emerged as the third biggest data centre market in the Asia-Pacific (APAC) region in 2023, highlighting the country’s commitment to expanding its digital infrastructure.

It is expected that the nation’s data centre industry could reach US$4.5bn by 2025, reaching 1.318GW by 2024 and growing to 1.4GW by 2025.

Rapid expansions in line with digital growth

In line with the increased demands of new technologies such as cloud and AI services, India is currently experiencing unprecedented digital growth. 

With demand, comes data, as companies are committing to expanding their digital infrastructures in the region to meet rising customer needs - as well as committing to the Indian market.

In fact, January 2024 saw world-leading data centre company Digital Realty unveil its first data centre in India. The inaugural data centre is located in Chennai and has the capacity to support up to 100 megawatts of critical IT load, marking a significant expansion for the company’s data centre platform.

Digital Realty is anticipating India to become one of the largest economies by 2027 and so, like other data centre enterprises, is positioning itself to deliver cutting-edge technology to satisfy customer requirements amid rising demand.

Site growth with a sustainable focus

The data centre industry in India is also keen to expand in accordance with sustainable infrastructure. 

Colt DCS, for instance, announced in September 2023 that it was expanding into the Indian market - whilst simultaneously announcing a new hyperscale data centre to contribute to the region’s digital transformation. Part of this plan is to achieve more sustainable operations, pledging to become a net zero carbon company by 2045.

Likewise, global critical digital infrastructure company Vertiv recently announced that it is opening a new manufacturing facility in India to meet the surging demand for data centres across the APAC region. 

It marks the company’s third facility in India and will manufacture thermal management products and solutions tailored for colocation, cloud, telecom and enterprise data centres. It is located in an India Green Building Council (IGBC) compliant park that focuses on sustainability and reducing environmental impact.

The company, much like others investing across APAC, is keen to ensure that it is constructing data centres as sustainably as possible.

Vertiv CEO Giordano Albertazzi says, “With increasing global digitalisation and the rapid adoption of AI, the data centre industry is experiencing growth and a demand for more capacity, including for data centre thermal and power infrastructure. 

“India’s emergence as a data centre hub in the APAC region is a key reason that we built this third manufacturing facility in India, and it reinforces our commitment to nurturing the country’s data centre ecosystem while also addressing global demand.”

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