According to a report by JLL India, India’s data centre industry is poised to surge 66 per cent by 2026, driven primarily by artificial intelligence (Al) and the nationwide rollout of 5G technology.
The report noted that the country’s data centre industry is expected to add a staggering 604 MW capacity, requiring 7.3 million sq ft and $3.8 billion in the next two and a half years.
It highlighted that India is rapidly establishing itself as a global centre for Al innovation and data centre growth. Hyperscalers are increasingly pursuing self-build projects in major data centre hubs, while operators are planning new campuses powered by 400 kVA lines to support AI clusters. The growth is expected to be fueled further by significant government initiatives, including the approval of a $1.24 billion investment in AI infrastructure. Additionally, 5G network coverage is estimated to have reached over 90 per cent of India’s population by the end of 2023.
As per the report, in the first half (H1) of 2024, the data centre industry already reached a capacity of 917 MW with an impressive 873 MW occupancy, indicating extremely tight market conditions. Over the past four and half years (2019-H1 2024), the sector has expanded 2.5 times, growing at a remarkable 24 per cent compound annual growth rate (CAGR).
The report further added that as India positions itself at the forefront of technological advancement, the data centre industry’s growth is set to have far-reaching implications for the country’s digital infrastructure and economy. The industry’s expansion is not only creating new job opportunities but also driving innovation across various sectors, solidifying India’s position as a global tech powerhouse.
