Data Centre Update: H1 2023

Substantial increase in the demand for high computing and storage servers to drive a new wave of growth for high-end data centres

November 23, 2023
  • Samantak Das
  • Jitesh Karlekar

Generative AI and Machine Learning (ML) have opened a world of possibilities, resulting in a surge in compute usage across multiple applications. As a result, we anticipate a substantial increase in the demand for high computing and storage servers, driving a new wave of growth for high-end data centres on a global scale.

AI led demand growth for Indian DCs expected to be gain pace from 2024


Increasing digital growth, Digital Public Infrastructure, 5G rollout, and new applications of Artificial Intelligence (AI) like Machine Learning (ML) coupled with data protection laws and state incentives are expected to drive the Indian data centre industry growth with 693 MW capacity addition during H2 2023 to 2026. This would entail a demand for 8.8 mn sq ft of real estate space.


USD 4.4 billion investments expected in DC industry by 2026
  • Supply addition of 693 MW expected based on pre-commitment deliveries till 2026.
  • Key DC regions- Mumbai and Chennai will need real estate space of 4.5 & 2.7 mn sq ft respectively. Emerging DC hubs like Hyderabad and NCR will need 0.6 & 0.3 mn sq ft by 2026.

In 2023, India has seen many exciting things happen in the digital world, which points to a bright future. Some important things include new laws to protect people's personal data online, the faster introduction of 5G technology, the creation of a strong digital public infrastructure, and the arrival of new undersea internet cables. There have also been big partnerships for developing artificial intelligence and machine learning in India, as well as a big telecom company teaming up with others to expand. All these things show that the data centre industry in India, which helps with digital changes, is going through a period of high growth and is expected to keep growing for a long time.

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