India's Data Centre Boom: A Digital Growth Story

India's data centre market is set to grow from USD 4.5 billion in 2023 to USD 11.6 billion by 2032, driven by infrastructure expansion and digital service demand. The Economic Survey 2024-25 highlights cost advantages and government initiatives supporting this growth, predicting substantial future capacity increases.

India's data centre market is poised for significant expansion, with projections indicating a growth from USD 4.5 billion in 2023 to USD 11.6 billion by 2032, according to the Economic Survey 2024-25 unveiled in Parliament. This surge is largely powered by burgeoning infrastructure and a rising appetite for digital services.

The report underscores India's competitive edge, attributed to lower construction expenses, an established IT environment, and cost-effective real estate. In 2023, construction costs averaged USD 6.8 million per MW, lower than in Australia, Japan, and Singapore. Colocation capacity also skyrocketed with a 105% increase, reflecting ongoing market dynamism.

To meet cloud demands, the government has empanelled 23 cloud service providers under the MeghRaj initiative. The survey is prepared by the Economic Division of the Finance Ministry and serves as a precursor to the Union Budget, which will be presented on Saturday.

(With inputs from agencies.)