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India’s third party data center capacity estimated to reach 2,500 MW by FY 2028: Report

by Pratik Tripathi
September 25, 2025
in Technology
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India's logistics sector estimated to reach Rs 120 lakh crore by 2035: Report
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New Delhi, 25 September (IANS). India’s digital infrastructure is moving towards a large expansion. According to a report on Thursday, India’s Third Party Data Center (DC) capacity will double from 1,250 MW of FY 2025 to 2,400-2,500 MW in FY 2028 to 2,400-2,500 MW.

The report said that this increase can be seen in the next three years with a strong investment of about Rs 90,000 crore.

Credit rating agency ICRA said in its report, “Industry players have announced a total of 3.0–3.5 gW capacity development schemes for the next 7-10 years, which is a major investment of Rs 2.3-2.5 lakh crore. It shows the important role of the region in India’s current digital change.

According to the report, Mumbai is still at the forefront of the Indian Data Center sector, which contributes more than 50 percent of the current operating capacity and is ranked 21st among the top cities of the world in terms of DC capacity.

The strategic location of the city, reliable power infrastructure and closeness of cable landing stations make it a favorite place for data center operators.

India currently accounts for about 3 percent of 42 GW of global DC capacity, while the United States contributes about 50 percent.

Anupama Reddy, Vice President and Co-Group Head of ICRA’s corporate rating, Anupama Reddy said, “The recent draft proposal of the 20-year tax exemption policy of the Ministry of Electronics and Information Technology can prove to be a game-chainer for the growth of data center in India. Providing input tax credit on capital investment and improving the project in India can prove to be a game-chainer for the growth of data centers in India. Is.”

Edge data centers are also becoming increasingly popular. The reason for this is the need of low latency and high-speed in areas like banking, healthcare, agriculture and defense.

Indian Data Center operators are also focusing on renewable energy and currently 15-20 percent of their total power requirement is being met with green power.

According to the report, this part is expected to increase by 30–35 percent by FY 28, due to the need to diversify ESG rules and electricity sources.

-IANS

SKT/

Tags: BusinessIANSScience Technology

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