Mumbai, March 24 India’s data centre (DC) industry has witnessed over $6.5 billion in investments committed through private equity, joint ventures and acquisitions between 2014 and 2024, a report showed on Monday.
The industry has seen exponential growth between 2019 and 2024, recording a 139 per cent increase in capacity - scaling from 590 MW in 2019 to 1.4 GW in 2024, according to ‘India Data Centre Market: Growth, Trends and Outlook’ by Anarock Capital.
This surge is underpinned by rising internet penetration, which has risen from 33.4 per cent in 2019 to 55.2 per cent in 2024, a near-doubling in data consumption per user from 11.5 GB to 21.1 GB a month, and an explosion in average traffic per smartphone, which grew from 13 GB to 32 GB.
“India now leads globally in average mobile data traffic per smartphone, and just this fact alone has had a palpable impact on the demand for high-grade data centres in the country. India's booming digital engagement is a direct indicator of future DC demand,” said Devi Shankar, Executive Director - Industrial, Logistics and Data Centres, Anarock Capital.
Mumbai and Chennai dominate the DC market, accounting for 70 per cent of India’s total IT power capacity, with Mumbai alone contributing nearly half at 49 per cent.
These cities also witnessed record-breaking supply growth from 2022 to 2024 -- 92 per cent in Mumbai and 340 per cent in Chennai.
Together, these regions have contributed to an overall occupancy level of 76 per cent, underscoring strong market absorption and operational efficiency.
According to the report, India has emerged as a hotspot for hyperscalers adopting the 'own-and-operate' model. Over the past five years, around 440 acres of land have been acquired for the creation of hyperscalers across three major cities — Hyderabad, Mumbai and Pune.
"The size of India’s DC industry is currently estimated at $10 billion, with $1.2 billion in revenue for FY 2024," said Shobhit Agarwal, MD and CEO – Anarock Capital.
Notably, 78 per cent of the revenue is generated by four major DC operators. While EBITDA growth showed signs of plateauing post-2020, it is projected to rise by 50-55 per cent as under-construction projects reach stabilisation, he mentioned.
With exponential growth in data consumption, aggressive capital infusion, hyperscaler activity, and a strong push toward AI and sustainability, India is set to take a pole position in terms of global data infrastructure.
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