Data centre industry to see USD 5 bln investment by 2025 on data localisation

Data centres, which have seen a massive growth on the back of data localisation diktats and the pandemic, will witness USD 5 billion in investments till March 2025 and a threefold increase in capacity, a report said on Monday.

The overall capacity, which is measured by the amount of power they consume, stood at 360 MW as of March 2020 and the same is expected to surge to 1,100-1,200 MW by end of March 2025 after the investments of up to USD 5 billion, the report by the research arm of rating agency Crisil said.

The data centre business has entities like Japan’s NTT, Sify, Hiranandani Group etc in the fray already, and others like the Adani Group and an arm of Bharti Airtel have already announced investment plans.