ICRA Projects Doubling of India’s Data Centre Capacity by FY2027
According to a recent forecast by ICRA, India's data centre capacity is expected to double by the financial year 2027, driven by robust demand from various sectors.
Data CentreDigital TransformationIcraTechnologyInvestmentReal Estate MumbaiOct 23, 2024
ICRA's forecast is based on a comprehensive analysis of the current market trends and future projections. The agency highlights that the rapid digitalization and the increasing reliance on data-driven technologies are key drivers of this growth. Additionally, the government's push for digital initiatives and the expansion of 5G networks are expected to further boost the demand for data centres.
The data centre industry in India has witnessed significant investments from both domestic and international players. Major multinational corporations, such as Google, Amazon, and Microsoft, have already established a strong presence in the country. These companies are continuously expanding their data centre infrastructure to meet the growing demand from Indian businesses and consumers.
Moreover, the Indian government's 'Digital India' initiative has played a crucial role in promoting the development of data centres. This initiative aims to transform India into a digitally empowered society and knowledge economy. As part of this, the government has introduced various policies and incentives to attract investments in the data centre sector.
The report also notes that the growth of the data centre market is expected to create numerous job opportunities and contribute significantly to the country's GDP. The data centre industry is projected to generate direct and indirect employment for thousands of individuals, ranging from technical professionals to support staff.
However, the rapid expansion of data centres also poses some challenges. The need for reliable power supply and efficient cooling systems is critical for the smooth operation of these facilities. ICRA recommends that policymakers and industry stakeholders collaborate to address these challenges and ensure the sustainable growth of the data centre sector.
Information on ICRA
ICRA Limited, a subsidiary of Moody's Investors Service, is a leading credit rating and research agency in India. The company provides a wide range of services, including credit ratings, market research, and economic analysis. ICRA plays a vital role in the Indian financial market by offering independent and credible assessments of the financial health and performance of various entities.
FAQs
1. What is the projected growth rate of India's data centre capacity by FY2027?
- According to ICRA, India's data centre capacity is expected to double by the financial year 2027.
2. What are the key drivers of this growth?
- The key drivers include rapid digitalization, increasing reliance on data-driven technologies, government initiatives like 'Digital India', and the expansion of 5G networks.
3. Which major multinational corporations are investing in India's data centre market?
- Major multinational corporations such as Google, Amazon, and Microsoft have established a strong presence in India's data centre market.
4. How will the growth of the data centre market impact employment?
- The growth of the data centre market is expected to create numerous job opportunities, generating direct and indirect employment for thousands of individuals.
5. What are some of the challenges faced by the data centre industry in India?
- Challenges include the need for reliable power supply and efficient cooling systems, which are critical for the smooth operation of data centres.
Frequently Asked Questions
What is the projected growth rate of India's data centre capacity by FY2027?
According to ICRA, India's data centre capacity is expected to double by the financial year 2027.
What are the key drivers of this growth?
The key drivers include rapid digitalization, increasing reliance on data-driven technologies, government initiatives like 'Digital India', and the expansion of 5G networks.
Which major multinational corporations are investing in India's data centre market?
Major multinational corporations such as Google, Amazon, and Microsoft have established a strong presence in India's data centre market.
How will the growth of the data centre market impact employment?
The growth of the data centre market is expected to create numerous job opportunities, generating direct and indirect employment for thousands of individuals.
What are some of the challenges faced by the data centre industry in India?
Challenges include the need for reliable power supply and efficient cooling systems, which are critical for the smooth operation of data centres.
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