Economic Survey 2024-25: Data centre market expected to grow to $11.6 bn by 2032

“India benefits from lower construction costs on account of its well-established IT and digitally enabled services ecosystem, as well as relatively affordable real estate,” it said

“The data centre market is projected to expand from $4.5 billion in 2023 to $11.6 billion by 2032,” according to the Economic Survey 2024-25, which was tabled in the Parliament on Friday (January 31, 2025.)

“The country’s data centre market is experiencing substantial growth, fuelled by the expansion of infrastructure and an increasing demand for digital services,” the Survey said.

"The data centre market in India is expected to grow from $4.5 billion in 2023 to $11.6 billion by 2032, at a CAGR of 10.98%," the document said.

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“India benefits from lower construction costs on account of its well-established IT and digitally enabled services ecosystem, as well as relatively affordable real estate with a median of $6.8 million per MW in 2023, compared to $9.17 million in Australia, $12.73 million in Japan and $11.23 million in Singapore,” it said.

According to the Survey, India's colocation data centre capacity reached 977 MW in 2023. An additional capacity of 258 MW led to a 105% year-over-year growth. "The total capacity under construction for 2024-2028 is 1.03 GW, with an additional 1.29 GW planned," the Survey said.

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Further, it informed that the government has empanelled 23 public- and private cloud service providers to address the cloud needs of user departments, under the GI Cloud initiative, known as MeghRaj. “As of November 30, 2024, the National Informatics Centre supports 1,917 applications on its cloud,” it said.

The Economic Survey is an annual report presented by the government prior to the Union Budget, which assesses the state of the economy. It is prepared by the Economic Division within the Department of Economic Affairs, part of the Ministry of Finance, under the guidance of the Chief Economic Advisor. The Union Budget for 2025-26 will be presented by the Finance Minister on Saturday (February 1, 2025.)

Published - January 31, 2025 03:04 pm IST