CareEdge Ratings study
India data center capacity to double in 3 years

India’s data center industry is set to double from about 0.9 Gigawatts in 2023 to almost 2 Gigawatts by 2026. Over the next three years, it is expected that $6 billion will be invested to expand capacities.

India currently holds a data center capacity share of only 3% globally despite generating 20% of the world’s data, according to techcircle.in.

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Puja Jalan, Associate Director at CareEdge Ratings, believes that growth plans offer significant investment opportunities.

“However, project execution challenges, such as land and equipment availability and management of the vendor ecosystem, need to be addressed for the planned capacity addition to materialize,” Jalan said.

Maulesh Desai, a director at CareEdge Ratings, mentioned that the industry is likely to announce the addition of 5GW capacity over the next 5-6 years.

The ratings agency believes that data localization, tax incentives, and cost-saving measures by states will attract investments.