India's Data Centre Boom: A USD 30 Billion Market by 2030

India's data centre industry is on the cusp of substantial growth, with capacity expected to expand fivefold to 8GW by 2030, says a Jefferies report. This surge is driven by increased data traffic, AI utilization, lower latency needs, and regulatory pushes for data localization.

The report underscores that this growth demands significant investment, with the establishment of 1MW data capacity requiring capital expenditure of USD 4-5 million. Achieving the targeted 6.4GW increase will require a facility investment of USD 30 billion, alongside a projected fivefold rise in leasing revenues to USD 8 billion by 2030.

This expansion is spurred by internet penetration, growing smartphone use, and the popularity of OTT platforms and e-commerce. Regulations like the Digital Personal Data Protection Act, 2023, and RBI guidelines are boosting demand via data localization. AI servers, requiring more power and cooling, further amplify the need for data infrastructure.

The hyperscale cloud service providers comprise 60% of data centre clientele, with the banking sector at 17%. India's colocation data capacity has already surged to 1.7GW, with high occupancy at 97%, indicating demand surpassing supply. The report highlights downstream opportunities in real estate and power systems, with USD 6 billion and USD 10 billion potentials respectively. Access to capital is crucial for scaling in this burgeoning market.

(With inputs from agencies.)