India's Data Centre Market to Reach $8 billion in 2025
India's data centre market is expected to touch $8 billion by 2025 from its current valuation of $7 billion in 2023, a report published.
These developments will complement growth in the country's data centre capacity, which, according to a report by 1Lattice, a tech-enabled market intelligence firm, is slated to grow from the current 1,150 MW in 2023 to 1,700 MW by 2025, with a robust growth rate of 22 per cent.
It was noted that there is a heavy concentration of data centers emerging in Mumbai, Delhi-NCR, and Bengaluru. It has enabled these three cities to become central places for the provision of colocation services in India, which makes up more than 55% of the country's capacity.
Coming together - growth in data consumption, new technologies, and governments at the Centre supporting it - are making India one of the most rapidly growing data centre markets around the world, according to Abhishek Maiti, Director-Tech and Internet at 1Lattice.
Key government initiatives like 'Data Centre Incentivization Scheme' and 'Make in India' drive growth in this data centre sector, according to the report.
Investments in infrastructure, technology, and sustainability will drive change," Maiti said.
The Data Center market across the world is expected to increase from 227 billion dollars in 2023 to 250 billion dollars by 2025, primarily driven by cloud computing, edge technologies, and AI/ML, which are changing the way industries would manage and store data
India has scope to add another 500 MW data centre capacity over the next four years. The country's data centre sector has more than doubled from 540 MW of capacity at the end of 2019 to 1,011 MW as of 2023, keeping it at the top of the list as one of the world's fastest-growing markets. Data centre absorption rose by 21 per cent during the first half of the year-a period when demand for edge data centres started coming in from tier 2 and 3 cities.
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