In the backdrop of India's growth story as a major IT-ITes
hub in the last two decades, the Indian data centres industry is
now emerging as the next attractive opportunity for investors and
developers. In 2022-23, several foreign investors, global majors
and Indian corporates have announced investments into setting up
data centres or expansion of their current capacities. As of
November 2022, the data centre capacity in India was about 770 MW,
which is expected to grow significantly in the near future, with
Colliers projecting doubling of the data centre stock by
2025.1
Key Drivers for Growth
The demand for data centres in India is being driven by the need
for data storage given the Government's Digital India and data
localization policies, increased data consumption and 5G roll-out
which is expected to enable adoption of data intensive technologies
such as internet-of-things (IoT) and artificial intelligence (AI).
While the draft Digital Data Protection Bill, 2022
