India’s data centre industry has over $6.5 billion in investments committed through private equity, joint ventures, and acquisitions between 2014 and 2024, finds a new report, by ANARAOCK Capital. The industry has witnessed exponential growth between 2019 and 2024, recording a 139% increase in capacity - scaling from 590 MW in 2019 to 1.4 GW in 2024.
Mumbai and Chennai dominate the DC market, accounting for 70% of India’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, 92% in Mumbai and 340% in Chennai. Other important markets in the country include Noida, which holds 9%, Bangalore at 8%, Pune at 5%, and Hyderabad at 4%. These regions have contributed to an overall occupancy level of 76%, underscoring strong market absorption and operational efficiency.
India has emerged as a hotspot for hyperscalers adopting the 'own-and-operate' model. Over the past five years, approximately 440 acres of land have been secured for hyperscalers across three major cities. Hyderabad leads the charge, accounting for 69% of the total land acquisition, followed by Mumbai with 22% and Pune with 9%.
Key trends for 2025 and beyond indicate that Artificial Intelligence (AI) will drive the demand for data centres (DC). As AI workloads grow in complexity and scale, future-ready data centres must adopt advanced technologies and infrastructure to support these demands. Key requirements for accommodating AI workloads include the integration of liquid cooling technologies to manage heat dissipation effectively, higher rack densities of more than 30–40 kW per rack to ensure efficient power usage, and floor loads capable of supporting up to 2,500 kg per square meter to handle the heavy infrastructure requirements. These innovations will be essential to meet the increasing needs of AI-driven industries.
With environmental concerns gaining traction, there is a growing emphasis on energy-efficient design, renewable energy sourcing, and sustainable cooling methods. Green DCs are set to be a cornerstone of industry development going forward. 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 global data infrastructure.
