India Set To Attract Up To 25 Billion For Data Centre Expansion

(MENAFN- KNN India) New Delhi, May 28 (KNN) India's data centre sector is poised for significant growth, with projections indicating an investment influx of USD 20–25 billion over the next six years.

This expansion aims to bolster the country's digital infrastructure, catering to the escalating demand for data storage and processing capabilities.

Currently, India's data centre capacity stands at approximately 950 megawatts (MW), with expectations to double to around 1,800 MW by 2026.

This growth trajectory is fuelled by increasing digitisation, data localisation mandates, and the proliferation of cloud services.

Notably, Mumbai and Chennai have emerged as leading data centre hubs, collectively accounting for nearly two-thirds of the nation's total capacity.

Mumbai leads with 41 per cent, followed by Chennai at 23 per cent, and the Delhi National Capital Region (NCR) at 14 per cent.

The surge in data consumption, driven by widespread smartphone usage, e-commerce expansion, and the adoption of emerging technologies like artificial intelligence, necessitates robust data infrastructure.

Recognising this, both domestic and international players are channeling substantial investments into the sector.

For instance, global tech giants such as Amazon Web Services, Microsoft, and Google are collectively investing over USD 2 billion to expand their data centre footprints in India .

Government initiatives, including the Digital India program and data localisation policies, further incentives the development of data centres.

These measures aim to enhance data security, promote local data storage, and attract foreign investment.

Additionally, the shift towards edge data centres in Tier II and III cities is expected to improve service delivery by reducing latency and catering to regional data needs.

As India continues its digital transformation journey, the data centre sector's expansion is pivotal in supporting the nation's growing digital economy and ensuring seamless access to digital services across the country.

(KNN Bureau)

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