India to double data center capacity in 3 years – study

India’s data center industry capacity is expected to double in the next three years from around 0.9 Gigawatts (GW) in 2023 to nearly 2GW in 2026, according to the CareEdge Ratings study.

Six billion dollars (Rs 50,000 crore) are expected to be invested as capital expenditures (capex) in the next three years to create additional capacities.

India currently holds a data center capacity share of only 3% globally despite generating 20% of the world’s data, according to

Puja Jalan, Associate Director at CareEdge Ratings, said that the growth plans create substantial investment prospects.

“However, project execution challenges, such as land and equipment availability and management of the vendor ecosystem, need to be addressed for the planned capacity addition to materialize,” Jalan said.

Maulesh Desai, Director at CareEdge Ratings, added that the industry is expected to see 5GW capacity addition announcements over 5-6 years.

The ratings agency predicts that data localization, tax incentives, and cost-saving measures implemented by the states will help to attract investments.

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