The Indian data centre industry is growing at a rapid pace and basically fueled by the advancements in technology such as expansion of 5G and increasing digitalisation in sectors like banking and finance. The total capacity of India’s data centres is projected to reach 2 GW by 2026 and the market value is expected to climb to $11.6 billion by 2032.
Large-scale data centre projects are becoming more common and especially in hubs like Navi Mumbai. Chennai is also emerging as a preferred destination and Hyderabad is witnessing rapid expansion in hyperscale capacities. Traditional hubs are facing challenges like land scarcity and rising prices. Developers are now exploring some new availability zones which are slightly away from the usual clusters.
Artificial intelligence is playing a significant role in transforming data centres. The Indian AI market is expected to grow at a rapid pace of more than 20% annually until 2028. Rack density in data centres is expected to increase substantially and may move from current 8-10 KW per rack to around 30 KW per rack.
Data centres are adopting advanced cooling solutions such as liquid immersion cooling. The innovations offer improved energy efficiency and cost savings. Edge data centres are being developed to handle growing data traffic from smaller cities.
The migration from on-premise IT infrastructure to cloud computing is another major trend shaping the industry. Cloud computing offers scalability, enhanced security and cost efficiencies. Training initiatives are being implemented to build expertise in hardware, software and IT infrastructure management.
Data centres have also emerged as a lucrative asset class for institutional investors.