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India Data Centre Market:

Growth, Trends & Outlook

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Foreword
As the digital economy accelerates, In the coming years, India is expected The landscape of DC industry will
India is poised to become a global to see a substantial increase in DC continue to evolve in India and it will
hotspot in the data centre industry capacity, with a significant focus be interesting to see how the industry
over the next few years. The rapid on both scaling infrastructure and progresses in next five years.
expansion of data usage, fueled by adopting sustainable practices.
advances in technologies like Artificial
Intelligence (AI), cloud computing, and The growth in AI-led demand is a
the Internet of Things (IoT), is driving critical driver, with AI technologies
an unprecedented demand for data requiring vast amounts of data
storage and processing infrastructure. storage, computational power, and
connectivity. This shift will transform
the industry, creating new opportunities
for innovation and challenging data
centres to adapt to ever-expanding
requirements for speed, efficiency, and
This report provides a comprehensive security.
analysis of the current landscape of
India’s data centre (DC) industry, The Government has been very
examining existing DC supply, future supportive for the growth of DC
DEVI SHANKAR
growth trends, insights on market industry in India with various fiscal &
Executive Director
size and other financial metrics of the non-fiscal incentives offered for the Industrial & Logistics | Data Centre
industry. data centre investments in India. ANAROCK Capital Advisors
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Contents

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01 03

I N DI A DATA CENTRE IN D IA DATA C E N T R E I ND I A DATA CE NTR E I ND I A DATA CE NT R E

Industry Growth Story Market Update Market Size Outline Key Trends 2025

06 12 18 22
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01
I N DI A DATA CEN TR E I N DU STRY

Growth Story
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DC Industry Growth Story in India

India data centre (DC) industry has experienced remarkable growth in last 5 years, With commitments of USD 6.5+ Bn over the last decade through PE investments, JV
transforming from a nascent sector to a developing industry, attracting global interest platforms & acquisitions and continued interest in this sector from global & private
from various DC operators and private equity (PE) investors. investors, ease in project financing due to infrastructure status to data centres, the
India DC industry is set for multi-fold growth.

Key Comparison on Data & DC Growth in India (2019-24)

Data Consumption/User/Month 1 Growth in DC Capacity

11.5 GB 21.1 GB
2019 2024
83%
Increase
139%Increase
1.4 GW 590 MW
2024 2019

Internet Penetration 2 DC Penetration

33.4% 55.2%
2019 2024
1 mW/mn internet users 2024

Average Traffic/Smartphone/Month 3
USD 6.5+ Bn2014-24

13 GB 32 GB 146% Committed through PE Investments,

2019 2024 Increase JV Platforms & Acquisitions

1 Source: TRAI Numbers rounded off to the nearest decimal 1 Gigawatt (GW) = 1,000 Megawatt (MW)
2 Source: Statistica
3 Source: Ericson Mobility Report 2024
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DC demand driver
in 2025 & ahead
India currently holds
top rank globally
for average mobile data
traffic per smartphone
Banking & Financial
Institutions
(BFSI)
Data consumption per user
has nearly doubled in the last 5 years
with accelerated growth on various fronts like -
AI Workloads
by
Technology Firms

Streaming Services Digital Payments Cloud

Service
Rise of OTT platforms like Netflix, Wide adoption of Unified Payment Providers
Amazon Prime, Jio Hotstar and Interface (UPI) payments with
various others need huge streaming transactions worth USD 2.88 Tn in 2024
infrastructure

Over-The-Top
(OTT)
Players

E-commerce Social Media

Growth of e-commerce platforms like Massive user generated content on
Amazon, Myntra, Flipkart and quick social media apps like Facebook, Social Media
commerce platforms in grocery, food, Instagram, WhatsApp including videos,
medicines etc. generate huge customer photos and texts
and logistics related data

ANAROCK Capital Research & Industry Sources

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02
I N DI A DATA CEN TR E I N DU STRY

Market Update
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India DC Market Update Current DC Stock Split City-wise#

Current DC Supply Upcoming Supply MMR & Chennai continue to be hotspots

for DC operators, together they contribute
to 70% of the total DC stock in India.

20 Mn Sf*
2024
31 Mn Sf*^
2025E
Growth in Supply (2022-24)

~76% 9% 92% 340%

By Area
(Mn sf)

Overall Occupancy Noida MMR Chennai

(2024)
This growth signifies major cash deployment
from DC operators to build capacities

1.4 GW
2024
617 MW
2025E
3%
Other
at these 2 locations in last 3 years.

Tier II Cities**

70% 75%
By IT
Power
(MW)
MMR & Chennai MMR & Chennai

30%
Other Cities
25%
Other Cities
5%
Pune
1%
Kolkata

* Conversion of 15,500 sf for 1 MW has been used considering range of 12,500 sf

to 18,000 sf for 1 MW as per industry experience
^ Given the infrastructural changes being adopted by the industry to meet
the high density rack space demand, this conversion number may vary in the future

4%
Hyderabad

Projected DC Capacity in India^^

49% 21% 8%
2.0 GW
2025E
2.6 GW
2027E
MMR Chennai Bengaluru

By IT
Power
(MW)

% Share By
IT Power (MW)

Numbers rounded off to the nearest integer unless otherwise stated Map not to scale, for reference purpose only ANAROCK Capital Research & Industry Sources
Data given for CY = Calendar Year (1st January - 31st December) #
This excludes capacities from hyperscalers own & operate facilities
^^ This is based on the projects that are under construction & planning stage ** Including Vishakhapatnam, Kochi, Jaipur & Ahmedabad
1 Gigawatt (GW) = 1,000 Megawatt (MW)
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Occupancy Level across Key DC Markets (2024) Significant Under Penetration

of DC Capacity in India (2024) 4

81%
MMR

76% 1 MW
India
/ Mn internet users

Delhi-NCR

75%
Bengaluru
4 MW
China
/ Mn internet users

This signifies a huge growth

65%
Chennai
51 MW
USA
/ Mn internet users
potential in the DC industry in
India

Hyperscaler Self-Build DC Facilities (2024) Commissioning Timelines

India is witnessing massive capital inflow from the hyperscalers to build data centres
under their own & operate strategy. % of
IT Power (MW)

Hyderabad, Navi Mumbai & Pune emerged as key cities for

hyperscalers with a total commitment of ~440 acres of land
Expected capacity
in next 3 years is ~85%
for development in last 5 years. ~85% of the capacity
delivered till 2024.

69%
Hyderabad
26%
22%

22%
Navi Mumbai 9% 9% 8%
12%

5% 4% 5%

9%
Pune Until 2010 2010-15 2016-19 2020-22 2023 2024 2025E 2026E 2027E

Numbers rounded off to the nearest integer unless otherwise stated 4 Source: Care Rating Data Centre Report May 2024 ANAROCK Capital Research & Industry Sources
Data given for CY = Calendar Year (1st January - 31st December)
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03
I N DI A DATA CEN TR E

Market Size Overview

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India DC Market Size Overview Cash Deployment Trend in India DC Industry

USD 10 Bn
Size of DC industry in India
USD 4.2 Bn
Total capital deployed
USD 2.4 BN
Debt
(Based on EBIDTA as of 31st March 2024) on ground for development 48% of total capital deployed
(Assuming a 20x EV/EBIDTA multiple) (2014-24) (fixed assets & working capital)

USD 6.5 BN USD 2.6 BN

As of 31st March 2024, EBITDA has been growing
the DC industry revenue is till 2020 and seems to be
USD 1.2+ Bn plateauing since then. Total equity committed Equity
Revenue EBITDA in DC industry in India, 52% of the total capital deployed
78% of total revenue EBITDA growth is through PE investments, (fixed assets & working capital)
Margin
is contributed by 4 DC expected to be around JVs & acquisitions
operators implying that 50-55% once the under- 11% - Before 2019
the players who have development projects 89% - Since 2019
entered the Indian market approach stabilization.
in last 5 years are focused
on development of the USD 1.1+ Bn
facilities and are yet to
operate at 100% capacity.
USD 1.2+ BN 2024
2024

40%
R Cash deployment has almost
YoY
7 % CAG th doubled from USD 623 Mn
2 ow Growth
I T DA Gr (2022) to USD 1,179 Mn (2024)
EB
implying strong focus on
22% 24% 25%
31%
35%
39%
41% 41%
40% construction & development of
2024 new DC facilities in last 2 years
28% 36%
24%
2014

A GR
C ue
USD 190 MN %
21 even th
R ow
USD 145 mn
2014 2014
Gr
1,264
1,072

1,179
350
705

845
623
823
244

574
497
377
374

351
190

145

136

192

147
110
115
311

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Numbers rounded off to the nearest integer unless otherwise stated EBITDA Margin Revenue Cash Deployment
Data given for FY = Financial Year (1st April - 31st March) (%) (USD Mn) (USD Mn)
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04
I N DI A DATA CEN TR E

Key Trends 2025

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1 Infrastructural Changes in
DC to Service AI Workloads
Implementing efficient cooling
technologies such as liquid cooling

2
Higher floor load of 2,200-2,500 kg/m2

India DC Rack density of >30-40 KW/rack

Key Trends 2025

Artificial Intelligence (AI)

Led DC Demand
India’s Generative AI sector is
set for a promising growth
Edge Facilities in Tier II Cities
With the increasing AI demand, the
DC operators continue to re-evaluate Gen AI based applications will further

USD 1.1 Bn
their design and plans to factor in the push the demand for edge DC
infrastructural changes required to
support DC demand from AI workloads. Edge facilities will grow in tier II cities
2025E

3
like Jaipur, Ahmedabad, Vizag, Kochi,

USD 6.4 BN
Expected Data centres are going to play an
Market Size Bhubaneshwar, Lucknow, Patna, etc.
important role throughout this digital
2030E transformation with increase in demand
for compute power, storage and data

42% 5
CAGR
management capabilities.

Also, as Gen AI moves into real time

(2025E - 2030E) application, low latency processing
becomes critical and this will push the
need for edge data centres across the Focus on Sustainability
country.
& Green DC
Sourcing renewable energy power
& incorporating energy efficient
solutions to meet DC power

4
requirement will be a key goal for DC
GoI’s aggressive IndiaAI mission is focusing operators
on supporting development of six to eight
large language model (LLM) to meet India’s
linguistic and economic needs.

5 Source: Statista Market Insights 2024

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ANAROCK DC Solutions

INVESTORS
Investment Banking Land / Asset Sale
Fund Raising: Assist DC operators in raising Land Acquisition: Assist DC operators
equity platforms or project specific equity acquire the right land parcels in DC micro-
from institutional capital providers. markets through outright sale or JVs, JDs,
built-to-suit, etc. through a transparent
Buy-side Advisory: Advise global DC process. We facilitate operators acquire
operators or PE funds on their entry land through private sale or Government
strategy into India, for DC investments. We allotment.
also aid institutional players understand the
sector in terms of capital and financing. Asset Sale: Assist operators, developers,
investments funds or enterprises dispose of
Corporate Finance: Raise construction & built-out assets either through outright sale
project finance at competitive rates & terms or sale and lease back.
from private or public banks or NBFCs.
Portfolio Sale: Advise & run portfolio
divestments for developers, DC operators
and funds for exit through sale to strategic
or financial investor.

Joint Ventures (JV) Strategic Consulting &

Valuation
Strategic JV: Assist strategic joint ventures Provide factual, data-driven market
between global and Indian DC operators evaluation and unbiased recommendations
to create synergistic value proposition for to enable decision making by DC operators
India market. and PE funds.

Operator–Developer JV: Set up joint With our rich experience in business

ventures between DC operator and real valuation, we help operators and funds in
estate or infrastructure developer for land financial feasibility and asset valuation as
acquisition, approvals and development. per the business needs.

Energy & Sustainability JVs: Assist DC

OPERATORS operators execute long term PPAs under

captive or group captive scheme for
purchase of renewable power for DC
operations.
28

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Author Contributor

Ankita Sahu Devi Shankar

Sr. Manager Executive Director
Industrial & Logistics | Data Centre Industrial & Logistics | Data Centre
ankita.sahu@anarock.com devi.shankar@anarock.com

Designer

Dr. Paridhi Gupta

Sr. Vice President - Design
ANAROCK Capital
paridhi.gupta@anarock.com

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