Indian data center sector needs $3.7 billion investment by 2023 to meet demand

India’s data center sector will require investment of $3.7 billion over the next three years in order to fulfill the 6 million sq. ft greenfield development opportunity for the industry, showed a JLL India study.

As the data centre landscape continues to evolve, the industry is expected to grow exponentially to reach 1,007 MW by 2023 from its existing capacity of 447 MW. With growing reliance on digital connectivity, demand is likely to ramp up further due to the imminent rollout of 5G rollout, IoT-linked devices, data localisation and cloud adoption.

Mumbai and Chennai are expected to drive 73% of the sector’s total capacity addition during 2021-23, while other cities like Hyderabad and Delhi NCR emerging as new hotspots.