India is on the brink of a data center revolution, with the colocation space poised to witness a remarkable growth of 230 MW in IT load capacity by the end of 2024. This surge reflects the nation’s expanding digital economy and its evolving status as a global data center hub.
A Regional Focus on Growth
While Mumbai remains at the forefront of this transformation, 2025 promises to bring a diverse regional growth pattern, alongside Mumbai, cities such as Delhi-NCR, Kolkata, and Chennai are set to see substantial expansions in data center capacity. This geographic diversification underlines India’s potential to support a broad network of data infrastructure hubs across the country.
India: A Cost-Effective Data Center Destination
One of India’s most significant advantages in the data center industry is its cost-effectiveness. The median cost of constructing a data center in India is estimated at $6.8 million per MW of capacity—a figure considerably lower than other countries in the Asia-Pacific region. By comparison, Australia’s cost stands at $9.17 million, and Japan’s at $12 million. Coupled with affordable land and power costs, India’s favorable economic landscape makes it an attractive destination for data center investments.
The Role of Undersea Cable Projects
Mumbai’s strategic positioning will be further enhanced by the completion of three critical undersea data cable projects in 2025. These cables are expected to solidify Mumbai’s role as a regional data center hub, connecting India to international markets and boosting its digital infrastructure capabilities.
Projections for 2025 and Beyond
With the momentum from ongoing greenfield projects, 2025 is expected to add 250 MW of colocation IT load capacity, bringing India’s total installed capacity to an impressive 1.46 GW. This growth aligns with the rising demand for data consumption and the rapid digitalization seen across sectors in the country.
India’s Journey Towards Becoming a Global Data Center Hub
The rapid expansion of India’s data center industry is underpinned by its robust IT ecosystem and digitally enabled services. The nation’s commitment to sustainability and innovation further positions it as a key player in the global data center market.
As India accelerates its journey towards becoming a data center powerhouse, the growth in colocation capacity serves as a testament to its potential. With strategic investments, regional diversification, and a cost-competitive edge, India is set to play a pivotal role in shaping the future of the digital economy.
Connect with PRASA for Expert Solutions
Are you looking to optimize your data center infrastructure or explore innovative colocation solutions? PRASA is here to help you navigate the rapidly evolving data center landscape. With decades of expertise and a commitment to sustainability, we offer tailored solutions to meet your business needs. Contact us today with our expert team at enquiry@prasa-pl.com or +91 8806660084 to learn how we can support your journey toward a more efficient and resilient data center ecosystem. Visit our website or reach out directly to our team for personalized assistance.
Source: Cushman & Wakefield
