Indian data centre market to add 500 MW capacity in next 4 years: Report

Mumbai: India has the potential to add another 500 MW data centre capacity over next the four years, as demand for artificial intelligence (AI) use cases surge in the country, a report said on Wednesday.

With AI workloads set to surge and eventually outpace traditional cloud computing, the demand for data centres is also expected to rise sharply, according to the report by Avendus Capital, one of the country’s largest investment banks.

The data centre sector doubled from 540 MW in 2019 to 1,011 MW in 2023, making India among the fastest-growing markets globally.