'Data centre capacity rises 59% annually', Pg17

Key Highlights:

• India's data centre segment recorded a 59% annual growth in fresh capacity additions, reaching 258 MW IT during January-June 2026.
• This surge increased the country's total operational data centre stock to 1.8 GW IT.
• Hyperscalers accounted for 36% of the total operational stock, indicating their significant role in the market.
• The real estate consultant Savills India reported these figures, highlighting robust expansion in the sector.

Detailed Insights:

• The rapid growth in data centre capacity is driven by increasing digitization, rising internet penetration, and the proliferation of digital services in India.
• Government initiatives such as Digital India and policies like the Digital Personal Data Protection Act, 2023, which mandates data localization, are key catalysts for this expansion.
• Data centres are crucial for India's digital economy, supporting cloud computing, Artificial Intelligence (AI), 5G, and e-commerce platforms.
• The sector has been granted Infrastructure Status for Data Centres (for facilities above 5 MW IT load), facilitating easier access to credit and investments.
• Despite the growth, challenges persist, including the availability of adequate power and suitable land parcels for development.
• India's data centre market is projected to nearly quadruple, potentially reaching over 7 GW IT by 2030, reflecting sustained investment and demand.
• The expansion of data centres is vital for enhancing digital sovereignty and national security by ensuring domestic storage and processing of sensitive data.

Key Concepts Involved:

• Data Centre: A specialized facility housing computing and networking equipment for storing, managing, and processing large volumes of electronic data.
• MW IT: Megawatt (MW) of Information Technology (IT) load, a standard unit for measuring data centre capacity based on the electrical power available for IT equipment.
• Hyperscalers: Large-scale cloud service providers (e.g., AWS, Google Cloud, Microsoft Azure) that operate massive data centres with highly scalable and flexible computing infrastructure.
• Data Localisation: The requirement for data generated within a country to be stored and processed within its geographical borders, often for national security and privacy reasons.