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

India's data centre market set to grow to $11.6 billion by 2032, driven by infrastructure expansion and digital demand.

“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.

Economic Survey pegs FY 2026 growth at 6.3% to 6.8%