Mumbai, March 26 India has emerged as a major hotspot for hyperscalers, with significant land acquisitions in cities like Hyderabad and Mumbai to support large-scale data centre infrastructure, Devi Shankar of Anarock Capital told IANS on Wednesday.
Over the past few years, nearly 440 acres of land have been acquired for hyperscaler development in the country, as global cloud providers and domestic players seek to establish high-capacity facilities, she informed.
The country’s data centre industry has witnessed remarkable growth, attracting over $6.5 billion in investments over the last decade. It is currently valued at approximately $10 billion, with revenue reaching $1.2 billion in 2024.
This surge has been fuelled by increasing internet penetration, a sharp rise in data consumption, and a massive jump in mobile data traffic per smartphone.
From 2019 to 2024, India’s data centre capacity has grown from 590 megawatts to over 1.4 gigawatts, highlighting the industry's rapid expansion.
“Over the past seven years, various policy measures have encouraged investment in digital infrastructure, making India a preferred destination for data centre expansion,” Shankar, who is an executive director – capital markets at Anarock Capital, told IANS.
She added that the country now leads globally in average mobile data traffic per smartphone, and this has significantly driven demand for high-grade data centres.
“The country’s digital transformation is a direct indicator of future data centre requirements," Shankar said.
The growing adoption of artificial intelligence (AI) has further intensified the demand for data storage and processing power.
AI-driven applications require vast computational resources, prompting hyperscalers to expand aggressively in the country.
“As a result, several global technology giants are opting for the ‘own-and-operate’ model, ensuring better control over infrastructure and operational efficiency,” she continued.
According to Shankar, as more global players invest in India's data centre ecosystem, domestic operators are also striving to remain competitive by focusing on sustainability and energy efficiency.
“The industry is witnessing a shift towards green data centres, with companies prioritising renewable energy sources and energy-efficient cooling technologies,” she mentioned.
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.
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