Summary :

India’s data centre sector is expected to attract ₹1.6–2 lakh crore (US$ 18.67–23.33 billion) investments in the next 5–7 years, driven by strong demand, according to India Ratings and Research. Around 7.1 GW of new capacity has been announced, though 60% is still in early stages, with 1.3 GW under construction and 1.6 GW in planning. Annual capacity additions will likely rise to 300–350 MW during FY26–FY28, up from 150–250 MW in FY22–FY25, targeting 2.4 GW by FY28. Capex per IT MW is ₹50–70 crore, with real estate making up 20% of costs. Capex inflation is manageable but may rise due to AI-related cooling and tech needs. Rentals are projected to grow 3–5% annually, with capex inflation around 5–6%. Hyperscalers like Google and Amazon pay ₹6,429–7,286 per kW/month, while enterprises pay ₹8,143–10,715. AI demand is reshaping data centre needs, and timely power infrastructure expansion is key for future growth.

Source: IBEF

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