India's Data Center Market Poised for Growth with Major Investments and Partnerships
India's data center market is set for significant growth, driven by substantial investments from major companies like Google and AWS, as the country aims to bridge a supply gap where it currently hosts only 3% of global capacity despite generating 20% of the world's data. Projections indicate that installed capacity could rise from 1.26 GW in 2025 to 8 GW in five years, necessitating an investment of US$ 30 billion. Companies such as E2E and Netweb are expanding their infrastructure and anticipating substantial revenue increases, reflecting the growing demand for digital services.

India generates nearly 20% of the world's data but only hosts 3% of global data center capacity, creating a significant supply gap. According to Colliers India, the country's installed data-center capacity increased from 0.3 GW in 2018 to 1.26 GW by April 2025, with projections suggesting it could reach 8 GW in five years, requiring US$ 30 billion in investment.
Major firms like Google, AWS, and Reliance are investing heavily in AI infrastructure. E2E has expanded its GPU capacity in Chennai, aiming for 80-90% utilization by March 2026 and recently secured contracts under the IndiaAI Mission.
Netweb anticipates a 35-40% CAGR, driven by a Rs 26.8 billion order book. Cummins reported a 28% revenue increase, with 40% of power generation sales from data centers. KRN expects 20% growth in HVAC demand due to digital infrastructure expansion. Orient is transitioning to a Total Outsourcing Service model, with a recent Rs 308 million contract from New India Assurance.




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