India’s Data Center Expansion: Surge to 17 GW by 2030, $27 Billion Investments
Jefferies said in a report that India’s Data Center sector is expected to make a significant leap, with projections indicating a twelvefold increase in capacity from 1- 1.5 gigawatts to 17 gigawatts by FY30E.
This surge is projected to account for 6% of the nation’s total power demand by 2030, a significant increase from less than 1% today. This rapid growth rate underscores the urgency and importance of the data center sector’s development, with a compound annual growth rate (CAGR) of above 50%.
According to the report, the data center’s estimated growth is set to boost investment in power generation and transmission. Lavina Quadros, Equity Analyst at Jefferies, Said, “Investment in power generation and T&D are predicted to rise twice to $280 billion from FY24E to FY30E, which is compared to the previous period FY17-23.”
Internation data centers like AWS, NTT, and Colt DCS, along with Indian giant businesses like Adani groups and Reliance, are also paving their way into the Indian market. The sector has registered investments exceeding $27 billion over the last 36-48 months. In addition, organizations like Netflix, Amazon, and different banks and fintech firms are among the key occupants of these facilities.
Other gain businesses like Transformers, Rectifiers India, and Apar Industries also boost their capacities with an export-oriented approach. Also, the capital expenditure on setting up these data centers averages between $4-5 million per megawatt, with the most significant cost component being power, which accounts for about 30% of the total capex. This underscores the potential energy requirements required to sustain the growing nationwide infrastructural requirements of data centers.
