Data localisation and data explosion in India would lead to sixfold increase in data centre (DC) capacities in the next six years, ICRA said in a note.
Overall, 4,900-5,000 MW of capacity involving investments of ₹1.50 lakh crore are likely to be added in the next six years.
Business houses namely Hiranandani Group, Adani Group in JV with EdgeConnex and Reliance Group and foreign investors like Blackstone, CapitaLand, Princeton Digital Group as well as captive consumers such as Amazon, Microsoft have started investing massively in Indian DCs.
Along with them, existing players like NTT, CtrlS, Nxtra, STT India are also expanding their capacities.
Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA, said, “The key triggers for digital explosion in India are the increasing internet and mobile penetration, the Government’s thrust on e-governance/digital India, adoption of new technologies (cloud computing, IoT, 5G), growing userbase for social media, gaming, e-commerce and OTT platforms.”
“This, coupled with favourable regulatory policies viz. the draft Digital Data Protection Bill 2022, providing infrastructure status to data centres, special incentives from Central and state governments like land at subsidised cost, power subsidies, exemptions on stamp duty, discounts on usage of renewable energy and procurement of IT components made locally, and other concessions are expected to boost DC investments in the country,” she said.
