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India's Data Centre Sector to Attract ₹3 Trillion Investment by FY30: Crisil
Sentiment: NeutralHigh Priority
What Happened?
India's data centre industry is set to enter an investment super-cycle, with capacity expected to grow fivefold to 7.5 GW by March 2030, according to Crisil. The surge is driven by demand for generative AI and digitalisation.
Key points
- Installed capacity in India's data centre sector is projected to reach 7.5 GW by FY30.
- Investment is expected to exceed ₹3 lakh crore over the next four financial years.
- Demand is driven by generative AI, enterprise digitalisation, and rising data consumption.
- Nearly half of the upcoming capacity is secured under long-term contracts.
- Development costs in India are about 20% lower than in competing Asia-Pacific markets.
- Three-fourths of the new capacity will be built in Visakhapatnam, Mumbai, and Hyderabad.
Key insights
- The surge in investment may lead to improved infrastructure and job creation in the tech sector.
- Long-term contracts with hyperscalers could stabilize revenue for developers.
- The focus on renewable energy aligns with global sustainability trends.
Market Impact
Data Centre
PositiveThe investment surge is expected to positively impact the data centre sector by enhancing capacity and infrastructure.
Why it matters
The growth in India's data centre sector could enhance its position as a global tech hub.
Source
Business Standard
