India’s Data Centre Revenue Expected To Grow 32% By FY26: CareEdge Ratings
CareEdge predicts a substantial financial inflow with likely capital expenditures reaching Rs 50,000 crore over the next three years
India is poised to dramatically increase its data centre capacity, with projections pointing to a doubling of capacity to 2,000 MW by 2026.
This expansion, as highlighted in a recent report by CareEdge Ratings, points to the country's transition towards a developed market economy, with a significant push towards adopting green energy solutions.
The report also predicted a substantial financial inflow with likely capital expenditures reaching Rs 50,000 crore over the next three years. This growth is not only a reflection of the country’s digital ambitions but also opens a wide array of investment opportunities within the data centre sector. According to the analysis by CareEdge Ratings, the industry is expected to see a remarkable revenue growth of 32 per cent between the fiscal years 2024 and 2026.
Despite generating about 20 per cent of the world’s data, India currently holds a mere 3 per cent of the global data centre capacity. However, this is set to change with the ongoing digital revolution across the country, fueled by the rapid expansion of ecommerce, fintech platforms, and increasing consumption of online streaming and gaming services. The growth in these digital services is anticipated to not only elevate the number of internet users but also significantly enhance internet penetration across the nation, thereby creating a robust demand for data centres.
