New Delhi, January 21 (IANS). Spending on data centers in India is expected to grow by 19.1 percent in 2025. This is almost double the growth rate of 2024. This information was given in a forecast on Tuesday.
Gartner’s latest forecast states that software and IT services are the key drivers of IT spending growth in India, which will grow by 16.9 percent and 11.2 percent respectively in 2025.
Naveen Mishra, vice president analyst at Gartner, said spending on software is driven by the premium pricing of GenAI-enabled solutions. At the same time, expenditure on IT services is increasing due to the requirements of industries for cloudification, digitalization and consulting services.
According to another report by real estate consultant CBRE South Asia last month, India’s data center market has attracted investments of $60 billion from both domestic and international investors between 2019-2024 and the total investment is expected to reach $100 billion by the end of 2027. Expected to cross.
According to Gartner, areas including data center systems, devices, and software will see double-digit growth in 2025, largely due to generative AI (GenAI) hardware upgrades.
Worldwide IT spending is expected to grow to $5.61 trillion by 2025. This is 9.8 percent more than 2024.
According to the report, by 2026, more than 50 percent of software spending in application software will be influenced by GenAI.
According to a CRISIL Ratings report, the capacity of India’s data center industry may double to 2 to 2.3 GW by financial year 2026-27. The reason for this is the increase in investment in cloud due to increasing digitalization of the economy.
The report further said that to meet the growing data center demand, an investment of Rs 55,000-65,000 crore is required over the next three financial years, which will be spent mainly on land and buildings, power equipment and cooling solutions.
–IANS
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