India's data centre sector is estimated to have a total investment pipeline of between Rs 1.6 trillion and Rs 2 trillion over the next five to seven years, according to a report by India Ratings and Research.
Demand for DC capacities is expected to keep pace with supply addition, providing stable to moderate growth in occupancies and rental rates.
DC companies have announced fresh capacity addition of a massive 7.1 gigawatts (Gw). However, almost 60 per cent of this is still at a nascent stage, with 1.3 Gw of capacities under execution and an additional 1.6 Gw at the planning stage.
The capacity addition is estimated to accelerate to 300 to 350 megawatts (Mw) per year over FY26-FY28, against the pace of 150 to 250 Mw per year over FY22-FY25, to reach a total DC capacity of 2.4 Gw by FY28.
Capacity stood at 1.3 Gw as of FY25. The total capital cost for a DC stands at Rs 50 crore to Rs 70 crore per information technology MW (excluding land and managed service/cloud capex).Of the total DC capex, real estate accounts for 20 per cent; the rest goes towards mechanical engineering, plumbing, and related work.
-- Business Standard