Hyderabad: India's data centre market is witnessing significant growth, projected to expand from $4.5 billion in 2023 to $11.6 billion by 2032, according to the Economic Survey 2024-25. Tabled in Parliament on Friday, the survey attributes this growth to the expansion of infrastructure and rising demand for digital services.
India's colocation data centre capacity reached 977 MW in 2023, the document said, adding that an additional 258 MW of capacity was added in the year, reflecting 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, it said.
Commenting on the future of the data centre market in the country, the document 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 survey indicated that India benefits from lower construction costs due to its well-established IT and digitally enabled services ecosystem. Additionally, real estate in India is relatively affordable, with a median cost of $6.8 million per MW in 2023, compared to $9.17 million in Australia, $12.73 million in Japan, and $11.23 million in Singapore.
"The government has empanelled 23 public and private cloud service providers to address the cloud needs of user departments," the document said, highlighting that the GI Cloud initiative, known as MeghRaj, is a key component of India's information technology strategy. It is aimed at delivering ICT services via cloud computing to Central and State/UT Departments.
According to the survey, the National Informatics Centre supports 1,917 applications on its cloud as of November 30, 2024.
The Economic Survey is an annual report presented by the government before the Union Budget. It assesses the state of the economy and is prepared by the Economic Division within the Department of Economic Affairs under the guidance of the Chief Economic Adviser. The Finance Minister will present the Union Budget for 2025-26 on Saturday.
