Indian data centres set for $100B investment surge by 2027

Cumulative investment committments in Indian data centres are likely to surpass $100 billion by 2027. The investments are likely to boost data centre capacity, which is projected to reach 2,070 MW (mega watt) by the end of next year.

According to Coldwell Banker Richard Ellis (CBRE), India’s data centre market has attracted investment committments of $60 billion in the last six years. The cumulative inflow is estimated to surpass $100 billion by the end of 2027.

The data centre market in India has experienced substantial investments from global operators, real estate developers, and private equity funds seeking to capitalise on the country’s growing market.

“By 2027, the sector is expected to attract over $100 billion investments. Significant capacity expansion is anticipated in major cities and emerging Tier-II locations. This growth will not only support the country’s digital infrastructure needs but also position India as a leader in next-generation technologies like AI [artificial intelligence], 5G, and cloud computing,” said, Ram Chandnani, Managing Director (MD), Advisory & Transaction Services, CBRE India.

Capacity augmentation
India’s current data centre capacity stands at 1,255 MW, and it is projected to further expand to around 1,600 MW by the end of this year. It is expected to reach 2,070 MW by the end of next year, according to the CBRE report.

Data shows that Mumbai continues to dominate data centre stock, followed by Chennai, Delhi-National Capital Region (NCR) and Bengaluru, accounting for 90 per cent of the country’s total data centre stock as of September 2024.

At present, India’s total data centre stock in terms of land area stands at 19 million square feet (msf), which is expected to reach 31 msf by the end of next year. The report further added that the sector is poised for significant growth next year, with nearly 475 MW of capacity under construction across major cities such as Mumbai, Chennai, and Delhi-NCR.

Anshuman Magazine, Chairman & Chief Executive Officer (CEO), India, South-East Asia, Middle East & Africa, CBRE, said that India’s data centre market is experiencing unprecedented growth, driven by a combination of rising digital consumption, government initiatives, and significant investments from both domestic and international players.

“With capacity set to reach 2,070 MW by 2025 and nearly 475 MW currently under construction, India is cementing its position as a global leader in digital infrastructure. The demand from banking, financial services and insurance [BFSI], technology, and telecommunications sector, combined with state-level policy incentives, will continue to fuel this growth, making India one of the most attractive destinations for data centre operators in the coming years,” he added.

Tier-II cities such as Ahmedabad, Kochi, Visakhapatnam, and Lucknow are gaining traction as key locations for data centres, driven by regional data consumption growth and cost-efficiency advantages, the report highlighted. Moneycontrol