India’s data centre market attracts USD 60 bn investment commitment during 2019-24: CBRE

India’s data centre market has attracted investment commitment of USD 60 billion in the last six years and the cumulative inflow is estimated to surpass USD 100 billion by 2027-end, according to CBRE. Real estate consultant CBRE South Asia on Wednesday released report ‘2024 India Data Centre Market Update’.

“The Data Centre (DC) market in India has experienced substantial investment from global operators, real estate developers, and private equity funds seeking to capitalise on the country’s burgeoning market,” the consultant said.

Between 2019 and 2024, India attracted investment commitments totalling more than USD 60 billion from both domestic and international investors, it added.

Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal emerged as the leading states in terms of cumulative investment commitments.

CBRE report anticipates “India surpassing USD 100 billion in cumulative investment commitments by the end of 2027”.

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, said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.

“The demand from 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 said.

The consultant said India’s data centre capacity is projected to reach about 2,070 MW by the end of 2025. India’s current data centre capacity stands at around 1,255 MW, and it is projected to further expand to around 1,600 MW by the end of 2024.

Mumbai continues to dominate data centre stock, followed by Chennai, Delhi-NCR and Bengaluru, accounting for 90 per cent of the country’s total data centre stock as of September 2024.

The country’s accelerated technology proliferation, digital transformation, increased internet penetration, policy enablers and growth in AI-generated data workload will pivot this growth, CBRE said.

One of the key growth drivers identified by the report is the infrastructure status accorded to the data centre sector, coupled with the 2020 Draft Data Centre Policy, which has fostered a conducive environment for operators and developers.

Furthermore, the implementation of the Digital Personal Data Protection Act (DPDPA) in 2023 has facilitated cross-border trade, and legitimate data processing and built stakeholder trust, propelling India and the digital innovation ecosystem.