India’s data centre capacity set to double by FY27

India’s data centre capacity is projected to reach 2,000-2,100 MW by FY27, driven by investments between Rs 500 billion and Rs 550 billion, according to Investment Information and Credit Rating Agency (ICRA). 

The current capacity is 950 MW, with NTT Global Data Centers, CtrlS Datacenters, STT Global, Sify Technologies, and Nxtra Data controlling 85 per cent of the market as of March 2024.

Low data tariffs, affordable smartphones, and technology adoption fuel the surge in data usage. Additionally, artificial intelligence (AI)- led demand is expected to grow significantly over the next three to five years. About 95 per cent of the existing capacity is concentrated in six cities, with Mumbai and Chennai leading.

Mumbai remains the key hub, contributing over 50 per cent of current capacity, owing to its connectivity and power reliability advantages. It is also central to the planned capacity expansion. As demand for co-location services rises, particularly from hyperscalers and the banking and IT sectors, revenues are forecasted to grow by 23-25 per cent YoY in FY2025, according to ICRA.