India’s Data Centre Capacity Poised to Hit 3-3.6 GW by 2030, Fueled by Hyperscaler Expansion, Reports Axis Capital

India’s data centre capacity is poised for significant growth, potentially reaching between 3-3.6 GW by 2030. This expansion is primarily driven by hyperscalers like Amazon Web Services, Microsoft, and Google, along with emerging AI-focused cloud players, who are expected to dominate the data centre demand landscape. A report from Axis Capital indicates that hyperscalers could command approximately 90% of the data centre market by 2030, up from the current 60%, as the need for vast computational power for AI and cloud services escalates. However, challenges in execution and supply chain disruptions may limit the operational capacity to around 2.8 GW, falling short of the aggressive public targets of 6-8 GW announced by industry players.

This forecast has profound implications for investors and the broader IT market. The increasing concentration of demand among hyperscalers underlines a shift in the industry, potentially leading to strategic partnerships or acquisitions as these giants vie for market share. Current operators and investors in the data centre sector must navigate a landscape marked by capital intensity, with the cost of AI-enabled data centre infrastructure surpassing traditional builds by approximately 10-15%. The identified bottlenecks may present challenges to fulfilling demand but also indicate lucrative opportunities for companies involved in construction, equipment supply, and energy solutions.

Looking towards the future, if the current pipeline of announced projects materializes fully, India’s data centre capacity could reach 7-8 GW by 2035. This would not only enhance the nation’s position in the global data centre market but also open avenues for innovation in power, cooling, and backup infrastructure solutions. The anticipated rise in capital requirements for AI-enabled facilities suggests that investment in this segment will remain high, underscoring the importance of strategic planning for stakeholders. Overall, while the road ahead contains challenges, the long-term outlook points to substantial growth and opportunity in the Indian data centre landscape.

Source: Livemint