India has become a key destination for hyperscalers, with major land acquisitions in cities like Hyderabad and Mumbai to support large-scale data centres, Devi Shankar, Executive Director – Capital Markets at Anarock Capital, told IANS on Wednesday.
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Massive Land Acquisitions and Investments
Over the past few years, around 440 acres have been acquired for hyperscaler development, as global cloud providers and domestic firms race to expand their high-capacity infrastructure. The country's data centre industry has attracted USD 6.5 billion in investments over the last decade and is now valued at USD 10 billion, with revenue reaching USD 1.2 billion in 2024.
India's data centre capacity has surged from 590 MW in 2019 to over 1.4 GW in 2024, fuelled by increasing internet penetration, rising mobile data consumption, and the growing adoption of AI-driven applications that demand vast computational resources.
"Over the past seven years, various policy measures have encouraged investment in digital infrastructure, making India a preferred destination for data centre expansion" Shankar was quoted as saying in the report. She added that the country leads globally in average mobile data traffic per smartphone, further driving demand for high-grade data centres.
AI and Digital Transformation Accelerate Expansion
"The country's digital transformation is a direct indicator of future data centre requirements," Shankar reportedly said, adding that the growing adoption of artificial intelligence (AI) has further intensified the demand for data storage and processing power.
"As a result, several global technology giants are opting for the 'own-and-operate' model, ensuring better control over infrastructure and operational efficiency," she explained, per the report.
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Sustainability and Green Data Centres
Domestic players are also striving to remain competitive by focusing on sustainability and energy efficiency, shifting towards green data centres powered by renewable energy.
India's growing digital participation and technological advancements indicate that the demand for data centres will only continue to rise.
"As hyperscalers establish a stronger foothold in the country, the data centre landscape is set for an era of unprecedented growth and transformation," she noted, the report said.
