Based on forecasts, the data center (DC) business in India is expected to develop at a phenomenal rate, adding 791 MW of capacity by 2026. The demand for 10 million square feet of real estate will increase as a result of this expansion, drawing $5.7 billion in investments.
The main factor driving the spike is the growing use of artificial intelligence (AI). The demand for Indian DCs is anticipated to reach between 650 and 800 MW in 2024–2026 as Al use picks up speed. According to a recent JLL survey, such is the case. Over the medium term, it is anticipated that the DC sector will see significant demand because to the exponential development in processing power and the novel applications that follow.
Cloud service providers (CSPs), who effectively provide data-specific IT infrastructure system storage and computing power access through the Internet, have realigned their requirements to factor in AI-led demand. The CSPs have also announced higher investments to scale up AI-led growth.
“The exponential growth in processing power and data volumes, driven by AI, necessitates the development of new data centers capable of meeting energy, processing, and cooling needs. The anticipated expansion and progression of diverse Al disciplines are projected to create additional demand for data.
centers, expanding their capacity requirements and advancing their capabilities,” said Rachit Mohan, APAC Lead, Data Centre Leasing and Head, Data Centre Advice, India, JLL.
“India is poised to be the third-largest economy, with a projected $5 trillion GDP by 2027 and a digital economy contribution of around 20 percent. This digital expansion is anticipated to propel the growth of India’s data center industry, which is projected to increase from 853 MW in 2023 to 1,645 MW by 2026.