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India's Data Centre Capacity Expected to Increase Five-Fold by 2030
Sentiment: NeutralHigh Priority
What Happened?
India's data centre capacity is projected to reach 7.5 gigawatts by March 2030, driven by investments exceeding ₹3 trillion. This expansion is fueled by generative AI and rising data consumption.
Key points
- Installed capacity is expected to increase five-fold to around 7.5 GW by March 2030.
- Investments of over ₹3 trillion are anticipated over the next four financial years.
- Nearly half of the upcoming capacity is committed under long-term contracts.
- India's development costs are about 20% lower than in competing Asia-Pacific markets.
- Three-fourths of the upcoming capacity will be concentrated in Visakhapatnam, Mumbai, and Hyderabad.
- Contract tenors have lengthened to 15-20 years, enhancing cash flow visibility.
Key insights
- The reliance on hyperscalers may increase customer concentration risks for developers.
- High pre-leasing levels could enable quicker cash flow generation once projects are operational.
- Timely power connectivity is critical to avoid delays in commissioning new facilities.
Why it matters
The growth in data centre capacity could significantly enhance India's digital infrastructure and attract global investments.
Tags
Entities
India· CountryCrisil Ratings· OrganizationVisakhapatnam· CityMumbai· CityHyderabad· City
Source
Business Standard
