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India is gearing up to add 1.7-3.6 gigawatts (GW) of colocation data centre capacity by 2028 to meet the surging demand driven by rapid digital adoption and extensive data generation across the country, according to a new report released by Cushman & Wakefield on Wednesday.
Titled "Is India Building Enough to Power its Digital Transformation?", the report highlights Indias robust data generation, particularly through smartphones, despite lower internet and smartphone penetration compared to other major nations. A colocation data centre, also known as a "colo," serves as a facility where businesses can rent space to house their servers and networking equipment securely, connected to high-speed networks.
For every 1 megawatt (MW) of installed colocation capacity in India, the report reveals a staggering 13.2 petabytes (PB) of data generated, far surpassing ratios in the USA (0.3 PB), UK (0.4 PB), Australia (0.3 PB), and even China (4.5 PB). This rapid pace of data growth is expected to escalate further over the next five years, driven by increased smartphone penetration, internet usage, OTT subscriptions, and IoT applications, coupled with the rollout of 5G networks and artificial intelligence advancements.
As of December 2023, Indias top seven cities collectively hosted 977 MW of colocation data centre capacity, with 258 MW added in 2023 alone—an increase of 105% from the previous year. With another 2.32 GW in planned expansions, India aims to reach a total capacity of 3.29 GW by 2028.
However, to align with comparable nations, the report suggests India should target a capacity of 5-6.9 GW by 2028 to fully leverage its digital growth potential. Failure to bridge this gap could limit Indias ability to capitalize on its digital economy momentum and potentially hinder its ambition to become a regional data centre hub.
The report also underscores Indias cost advantage in data centre development, with median construction costs estimated at $6.79 million per MW—lower than several Asia-Pacific peers such as Japan ($12.7 million), Singapore ($11.23 million), South Korea ($9.23 million), and Australia ($9.17 million).
"There is substantial opportunity for existing and new players to expand in Indias data centre market in the near-to-medium term," the report noted optimistically, affirming Indias potential to emerge as a global leader in data centre infrastructure. |
