India data centre market to see $20bn investment by 2025

The data centre market in India is expected to see a massive growth in investment over the next three years, according to the latest report from commercial real estate firm CBRE.

After generating $14 billion in the past five years, investors are planning to contribute an additional $6 billion over the next three years, making a total of $20 billion by 2025.

Amazon purchases land outside Mumbai to expand data centre footprint

Amazon Web Services (AWS) recently acquired 50 acres of land on the outskirts of Mumbai for $218 million. The land will likely be used to build a new data centre campus to meet growing demand for services in the area.

The company opened its first data centre in India in 2016, with the launch of the AWS Mumbai region, but the pace of expansion has accelerated in recent months. Earlier this year, Amazon launched a local zone in Delhi and is planning further data centres in Hyderabad, Chennai, Kolkata and Bangaluru. Additionally, AWS leased 5 acres in Mumbai where it is expected to build another data centre.

Yotta opens first hyperscale data centre in Greater Noida

This week, data centre owner, Yotta Infrastructure, launched the North India’s first hyperscale data centre in Noida.

Yotta D1 is the first of three planned data centres to be located in the Greater Noida Data Centre Park, offering 5,000 racks and 28.8MW capacity.

When finished, the three-facility, 20-acre campus will incorporate 30,000 racks, 160MW capacity, and four dedicated fiber paths.

Darshan Hiranandani, Co-founder and Chairman of Yotta Infrastructure, said: “India is poised to create up to $1 trillion of economic value from the digital economy by 2025, and North India is already a  preferred destination for Fortune 500 companies. Recognising the region’s potential and underserved data centre demand, Yotta has made continued investments in setting up the Greater Noida Data Centre Park, laying a robust foundation for the Digital India growth story.”

Colt DC building hyperscale data centre in Mumbai

The Yotta data centre in Greater Noida won’t be the only hyperscale location in India for long, however. Colt Data Centres is currently constructing a hyperscale facility in  Mumbai. One of the largest data centres in the Colt portfolio, the Mumbai data centre will offer 120MW capacity and is expected to be operational later this year.

What’s behind the rapid growth?

There are a number of reasons for the growth of the data centre market in India, including a surge in demand following the pandemic, boosted by digital-friendly governmental policies.

The increased use of advanced technologies in both the public and private sectors are also driving the demand for more data centre capacity, as more businesses are using machine learning, artificial intelligence, 5G and blockchain, along with more people working from home, gaming online, and accessing digital services.

There are currently 138 data centres in India, offering a combined 11 million square feet and 737MW capacity. New investments through 2025 will increase the total number of data centres by to 183; bringing space to 24 million square feet and 1,752MW capacity.