India’s data centre capacity to double in three years: Report
Updated: Mar 27th, 2024
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| Source: IANS |
India’s data centre capacity is likely to double in three years, from nearly 0.9 gigawatts (GW) in 2023 to 2 GW in 2026, a report said today.
This additional capacity built-up has created substantial investment prospects due to the estimated capex requirement of ₹50,000 crore in the next three years, according to the report by a credit rating company.
Currently, India has a data centre capacity share of only 3% globally despite generating 20% of the global data, while mobile data usage in India is highest globally when compared with exabytes usage per month.
“The project execution challenges, in terms of land and equipment availability and management of the vendor ecosystem, need to be addressed for the fructification of the planned capacity,” said Puja Jalan, associate director of the company.
Further, the cost per MW of setting up a data centre has also been rising with costs escalating to levels of ₹60-₹70 crore per MW from an average per MW cost of ₹40-₹45 crore, Jalan added.
The capacity growth has been complemented by the increased absorption in the country.
The report cited that the absorption levels have gone up from 82% in 2019 to 93% in 2023.
Over the next three to four years, revenue growth is anticipated to continue, with a 32% CAGR growth during FY 24-26.
It is anticipated that the EBITDA (earnings before interest, taxes, depreciation, and amortization) margins are likely to remain stable in the next three years, said the report.
The industry is expected to see 5 GW capacity addition announcements over 5-6 years.
“Going forward, cost competencies, innovative designs to accommodate scalability and adoption of newer technologies to meet ever-rising energy and cooling requirements are critical success factors for the industry,” said Maulesh Desai, director of the company.
(Source: IANS)
-Edited for style
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