India Data Center Sector on the Rise Expecting to Double in 3 years By CIOTechOutlook Team

India Data Center Sector on the Rise Expecting to Double in 3 years

CIOTechOutlook Team | Wednesday, 27 March 2024, 08:33 IST

According to the CareEdge Evaluations study, India's data center sector has entered a development stage, and the limit is supposed to be twofold in the following three years, from around 0.9 Gigawatts (GW) in 2023 to almost 2 GW in 2026. This extra limit developed has made significant venture possibilities due to the assessed capex prerequisite of Rs 50,000 crore in the following three years.

India has a data center limit of just 3% universally, notwithstanding producing 20% of the worldwide information. Mobile data usage in India is most noteworthy worldwide when contrasted with the utilization of exabytes each month. The appraisals office anticipates information restriction, tax incentives, and cost-saving sops given by the states to draw in powerful investments.

“The growth plans have also created substantial investment prospects and as per our estimates a capex of Rs 50,000 crore in this space over the next three years till 2026. However, the project execution challenges, in terms of land and equipment availability and management of vendor ecosystem, needs to be addressed for the fructification of the planned capacity addition planned,” said Puja Jalan, Associate Director, CareEdge Ratings

As indicated by her, the cost per MW of setting up data centers has additionally been ascending, with costs heightening to Rs 60-70 crore for each MW from the normal per MW cost of Rs 40 - Rs 45 crore. The expanded retention has supplemented the data center limit development in India. CareEdge Appraisals, in its report, has reported that retention levels have increased from 82% in 2019 to 93% in 2023. As the limit was added, industry players' income expanded by almost 25% CAGR from 2016-17 to 2022-23.