According to the report titled ‘2024 India Data Centre Market Update’, by CBRE, India’s data centre market has attracted investment commitment of $ 60 billion in the last six years and the cumulative inflow is estimated to surpass $100 billion by 2027-end. The sector has attracted significant capital from global operators, real estate developers, and private equity funds aiming to leverage the rapid growth of the market.
As per the report, between 2019 and 2024, India received investment commitments of more than $60 billion from both domestic and international investors. The report highlights that Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal are the leading states in terms of cumulative investment commitments.
Mumbai remains the primary hub for data centre stock, followed by Chennai, Delhi-NCR, and Bengaluru, which together account for approximately 90 per cent of the total data centre stock in the country. The report also notes that India’s data centre capacity is expected to reach around 2,070 megawatts (MW) by the end of 2025.
Further, CBRE attributes the growth of this sector to several factors, including accelerated technology proliferation, digital transformation, increased internet penetration, supportive policies, and a surge in AI-generated data workloads. One significant driver identified is the infrastructure status granted to data centres, along with the 2020 Draft Data Centre Policy that has created a favourable environment for operators and developers.
The report also added that the implementation of the Digital Personal Data Protection Act (DPDPA) in 2023 has enhanced cross-border trade and legitimate data processing while building trust among stakeholders, further propelling India’s digital innovation ecosystem.
