Economic Survey Pegs India’s Data Centre Market To Hit $11.6 Bn By 2032

Economic Survey Pegs India’s Data Centre Market To Hit $11.6 Bn By 2032

SUMMARY

India's data centre ecosystem is witnessing growth driven by the demand for IT infrastructure and digital services

Buoyed by technological advancement, the number of India’s Global Capability Centres (GCCs) has grown over 18% in the last five years to 1,700 in FY24 from 1,430 in FY19

The GCC ecosystem got a boost with the adoption of artificial intelligence (AI) and machine learning (ML) in the country

With the rising demand for digital infrastructure, the Economic Survey for 2024-25 tabled in Parliament today (January 31), projected India’s data centre market to touch $11.6 Bn by 2032, at a CAGR of 10.98% from $4.5 Bn in 2023. 

The country’s data centres ecosystem is expanding with rising demand for IT infrastructure and digital services. These data centres cater to the demand for cloud computing, data storage, and artificial intelligence (AI) and machine learning (ML) applications.

India’s colocation data centre capacity reached 977 MW in 2023 as per the economic survey. At the end of last year, the load capacity was approximately at 1000 MW.

The economy survey said that the total capacity under construction for 2024-2028 is 1.03 GW, with an additional 1.29 GW planned.

In line with it, the number of India’s Global Capability Centres (GCCs) has also grown buoyed by technological advancement. In the last five years, the number of GCCs increased over 18% to 1,700 in FY24 from 1,430 in FY19, the survey said.

Over these years, India has led the expansion of these capabilities centres globally with more than 400 new GCCs and around 1,100 new units established. The GCC ecosystem in the country is also fueled with the adoption of AI and ML in the country. 

In addition, major global organisations are bringing their technology ecosystem to India across sectors including aerospace, defence, and semiconductors. 

The survey also mentioned that the GI Cloud initiative, known as MeghRaj, is a key component of India’s information technology strategy. It is aimed at delivering ICT services via cloud computing to central and state/UT departments.

The MeghRaj initiative ensures optimal use of IT infrastructure and accelerates the development and deployment of e-Gov applications such as digital payments, identity verification, and consent-based data sharing.

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