Indian data centre market likely to grow to $11.6 bn by 2032: Survey

New Delhi: India’s data centre market is projected to expand from $4.5 bn in 2023 to $11.6 bn by 2032, as per the Economic Survey 2024-25, released on Friday.

India’s data centre market is experiencing substantial growth, fuelled by the expansion of infrastructure and an increasing demand for digital services, it said. “The data centre market in India is expected to grow from $4.5 billion in 2023 to $11.6 billion by 2032, at a CAGR of 10.98 per cent,” the document said.

India benefits from lower construction costs on account of its well-established IT and digitally enabled services ecosystem, as well as relatively affordable real estate with a median of $6.8 million per MW in 2023, against $9.17 mn in Australia, $12.73 mn in Japan, and $11.23 mn in Singapore, it said.

According to the survey, India’s colocation data centre capacity reached 977 MW in 2023. An additional capacity of 258 MW led to a 105 per cent year-on-year growth.

“The total capacity under construction for 2024-2028 is 1.03 GW, with an additional 1.29 GW planned,” the survey said.

Further, it informed that the govt has empanelled 23 public and private cloud service providers to address the cloud needs of user departments, under the GI Cloud initiative, known as MeghRaj.