{"id":15841,"date":"2025-09-27T09:20:00","date_gmt":"2025-09-27T09:20:00","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/27\/indias-data-centre-capacity-to-double-by-fy2028-on-rs-90000-crore-investment-push-report-business-news\/"},"modified":"2025-09-27T09:20:00","modified_gmt":"2025-09-27T09:20:00","slug":"indias-data-centre-capacity-to-double-by-fy2028-on-rs-90000-crore-investment-push-report-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/27\/indias-data-centre-capacity-to-double-by-fy2028-on-rs-90000-crore-investment-push-report-business-news\/","title":{"rendered":"India’s Data Centre Capacity To Double By FY2028 On Rs 90,000-Crore Investment Push: Report | Business News"},"content":{"rendered":"


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Established operators as well as new entrants have lined up development projects worth 3.0-3.5 GW to be rolled out over the next 7-10 years, according to rating agency ICRA.<\/h2>\n
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Mumbai remains the undisputed leader in the Indian data centre landscape, accounting for over 50% of the country’s operational capacity.<\/p>\n<\/figure>\n

India\u2019s data centre industry is set for a major expansion, with rating agency ICRA projecting that third-party data centre (DC) capacity will double to 2,400-2,500 MW by FY2028 from about 1,250 MW in FY2025. The growth will be backed by fresh investments of nearly Rs 90,000 crore over the next three years, highlighting the sector\u2019s growing importance in the country\u2019s digital economy.<\/p>\n

According to ICRA, established operators as well as new entrants have lined up development projects worth 3.0-3.5 GW to be rolled out over the next 7-10 years. Total investment commitments in the sector could reach Rs 2.3-2.5 lakh crore, reflecting strong confidence in India\u2019s digital growth trajectory.<\/p>\n

Mumbai leads the charge<\/strong><\/p>\n

Mumbai remains the undisputed leader in the Indian data centre landscape, accounting for over 50% of the country\u2019s operational capacity. The city also ranks 21st globally among top DC hubs, helped by its strategic location, reliable power infrastructure and proximity to submarine cable landing stations.<\/p>\n

Currently, India contributes around 3% of the global DC capacity of 42 GW, while the US accounts for nearly half. Industry watchers expect India\u2019s share to rise as data consumption surges and government policy support strengthens. The emergence of edge data centres \u2014smaller, decentralised facilities that cater to low-latency applications \u2014 is also accelerating, particularly in banking, healthcare, agriculture and defence.<\/p>\n

Green power and policy push<\/strong><\/p>\n

Operators are increasingly turning to renewable energy, with green power meeting 15-20% of their power needs at present. ICRA expects this share to climb to 30-35% by FY2028, in line with ESG mandates and the push for power diversification.<\/p>\n

Policy tailwinds are also playing a crucial role. The Digital Personal Data Protection Bill, the grant of infrastructure status to data centres, and state-level incentives are encouraging large-scale investments. Maharashtra, Telangana, Odisha and Tamil Nadu are among the states actively wooing investors with subsidies and tax breaks.<\/p>\n

Anupama Reddy, vice-president and co-group head (corporate ratings) at ICRA, said a recent draft proposal by the Ministry of Electronics and Information Technology (MeitY) to provide a 20-year tax exemption could prove transformational.<\/p>\n

\u201cIf implemented, the policy will significantly reduce upfront costs through input tax credits on construction and electrical systems. This could attract both domestic and global players to scale up operations with greater confidence,” she said.<\/p>\n

Profitability under pressure<\/strong><\/p>\n

While capacity growth is strong, competition is intensifying with new players entering the market. This is squeezing pricing flexibility, which could weigh on profitability and returns for operators.<\/p>\n

ICRA pointed out that companies have so far managed their credit profiles well by tapping long-tenured funding of 12-18 years, which has cushioned them against margin pressures. However, leverage ratios are expected to stay elevated in the medium term, with total debt\/OPBDIT at 4.5-5 times. Even so, debt service coverage is projected to remain comfortable at 1.5-1.7 times, supported by the long debt tenures.<\/p>\n

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\"Mohammad<\/figure>\n

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Mohammad Haris<\/a><\/p>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

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First Published:<\/span><\/p>\n
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September 27, 2025, 14:27 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> India’s Data Centre Capacity To Double By FY2028 On Rs 90,000-Crore Investment Push: Report<\/span><\/div>\n
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