According to the report by CareEdge Ratings, India’s data centre capacity is expected to double in three years, from nearly 0.9 gigawatts (GW) in 2023 to 2 GW in 2026.
The report noted that this additional capacity built-up has created substantial investment prospects due to the estimated capital expenditure (capex) requirement of Rs 500 billion in the next three years.
As per the report, currently, India has a data centre capacity share of only 3 per cent globally despite generating 20 per cent of the global data, while mobile data usage in India is highest globally when compared with exabytes usage per month.
The report added that the capacity growth has been complemented by the increased absorption in the country. The absorption levels have gone up from 82 per cent in 2019 to 93 per cent in 2023.
Further, the report predicted that over the next three to four years, revenue growth is anticipated to continue, with a 32 per cent compound annual growth rate (CAGR) growth during the fiscal years 2024-26 (FY24-26).
The report further anticipated that the earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins are likely to remain stable in the next three years. In addition, the industry is expected to see 5 GW capacity addition announcements over 5-6 years.
