Indian third-party data centre (DC) operational capacity is expected to double to 2400 –2500 MW by FY2028. Mumbai accounts for ~50% of the current operational capacity. Co-location services, backed by hyperscalers, contribute to the majority (85-90%) of the DC revenues for major developers.

• The global data centre capacity is estimated to be around 42 gigawatt (GW) with the US contributing to around 50%. India accounts for ~3% of the global installed capacity as of March 2025. However, this is likely to increase in the medium term, supported by data explosion and favourable regulatory policy initiatives. Low latency and high-speed requirements are driving edge DC business in the country. however, India is currently in nascent stages of its adoption.
• ICRA expects India’s DC operational capacity to increase to 2,400-2,500 MW by FY2028 from 1,250 MW in FY2025, involving investment of around Rs. 90,000 crore in FY2026-FY2028, supported by internet/data usage and data localisation initiatives. Further, established DC players and new players, which have entered this sector in the last 3-4 years, have a development pipeline of 3.0-3.5 GW to be delivered in the next 7-10 years, involving significant investments of Rs. 2.3-2.5 lakh crore.