Data centres to see Rs 45,000 crore investments till FY26, says Crisil
Crisil Ratings said in a note.
Large enterprises are increasingly embracing cloud solutions, which is fuelling the surge in demand for data centres, the agency said, adding that rising usage and adoption of Over-The-Top (OTT) platforms is driving up retail data consumption.
It said mobile data traffic alone has risen at an annual rate of 45 per cent over the last five years.
The newly launched 5G services will amplify data consumption among retail users even further, which will produce data that will finally be stored in data centres, the agency said.
Moreover, there is an enhanced regulatory emphasis on local storage of personal data as stipulated under the Digital Personal Data Protection Act as well as through policies formulated by some of the sector regulators, the agency said.
«The installed capacity of Indian data centres is expected to more than double and reach 1,700 MW by March 2026 from an estimated 780 MW as of March 2023.
This would require investment of Rs 45,000 crore,» its Deputy Chief Ratings Officer Manish Gupta said.
A third of the new investments will come in the financial capital, while the rest will be in the National Capital Region, Chennai, Hyderabad, and Pune, he added.
Mumbai remains the most preferred location because of availability of sub-sea cable landing stations, proximity to larger enterprises that helps in reducing latency and continuous availability of electricity, the agency said.
