India&rsquo;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% increase in capacity&mdash;scaling from 590 MW in 2019 to 1.4 GW in 2024, according to &lsquo;India Data Centre Market: Growth, Trends and Outlook&rsquo; by Anarock Capital.
This surge is underpinned by rising internet penetration, which has risen from 33.4% in 2019 to 55.2% 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.
&ldquo;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&rsquo;s booming digital engagement is a direct indicator of future DC demand,&rdquo; said Devi Shankar, Executive Director - Industrial, Logistics and Data Centres, Anarock Capital.
Mumbai and Chennai dominate the DC market, accounting for 70% of India&rsquo;s total IT power capacity, with Mumbai alone contributing nearly half at 49%.
These cities also witnessed record-breaking supply growth from 2022 to 2024&mdash;92% in Mumbai and 340% 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 &lsquo;own-and-operate&rsquo; model. Over the past five years, around 440 acres of land have been acquired for the creation of hyperscalers across three major cities&mdash;Hyderabad, Mumbai and Pune.
&ldquo;The size of India&rsquo;s DC industry is currently estimated at $10 billion, with $1.2 billion in revenue for FY 2024,&rdquo; said Shobhit Agarwal, MD and CEO&mdash;Anarock Capital.
Notably, 78 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% as under-construction projects reach stabilization, 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.
&mdash;IANS
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The industry has seen exponential growth between 2019 and 2024, recording a 139% increase in capacity

Over $6.5 billion in investment commitment gained in 10 years

India’s Data Centre Market Sees Huge Growth

Over $6.5 billion in investment commitment gained in 10 years

March 24, 2025 | 14:30 IST