According to a report by Savills India, the demand for data centres in India continues to rise, driven by factors such as the increasing adoption of cloud computing, the expansion of big data, the internet of things (IoT), artificial intelligence (AI), and the rapid growth of e-commerce and digital transformation initiatives.
The report stated that this demand was fuelled by hyperscalers, banking, financial services, and insurance (BFSI), IT and ITeS, and service sectors, all of which heavily rely on data centre operators for colocation and related services.
The report also mentioned that India is experiencing a surge in data centre land transactions, driven by growing demand and expansions by data centre operators and hyperscalers acquiring land across key cities. In 2024, over 200 acres of land were acquired in Mumbai, Hyderabad, Pune, Chennai and Bengaluru.
As per the report, the data centre supply capacity in 2024 across various cities stood at 191 MW IT in total, including Ahmedabad (1 MW IT), Bengaluru, Chennai (105 MW IT), Delhi-NCR, Hyderabad (13 MW IT), Mumbai (54 MW IT), and Pune (18 MW IT). Meanwhile, absorption capacity of data centres across these cities stood at 407 MW IT in 2024 with Ahmedabad (10 MW IT), Bengaluru (4 MW IT), Chennai (41 MW IT), Delhi-NCR (6 MW IT), Hyderabad (55 MW IT), Mumbai (216 MW IT), Pune (41 MW IT), and other tier two and tier three cities (34 MW IT).
