Why is India rapidly expanding its data centers?

India is expanding its data centers to meet the soaring demand for digital services, fueled by deep telecom penetration, widespread smartphone use, and accelerating cloud adoption.

What makes India an attractive location for data center development?

India offers significant cost advantages, with data center development costs 40-50% lower than the US, and power costs 30-40% cheaper, alongside strong connectivity and supportive policies.

What is the future outlook for India's digital infrastructure investment?

The outlook is strong, with sustained demand driven by enterprise needs, AI workloads, and consumer usage, alongside long-term investment opportunities in data centers and supporting infrastructure like power and connectivity.

Home / Business and Economy / India's Digital Boom: Data Centers Surge

India's Digital Boom: Data Centers Surge

9 Feb

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Summary

India's data center capacity is growing rapidly due to soaring demand.
Exceptional connectivity and supportive policies attract global investments.
India offers significant cost advantages for data center development.

India's Digital Boom: Data Centers Surge

India is undergoing a profound economic transformation, with digital infrastructure at its forefront. The rapid expansion of data centers is a direct response to the escalating demand for digital services, supported by robust connectivity and consistent energy supply. Encouraging government policies are further attracting substantial international investments into this burgeoning sector.

Over the past decade, India has built a formidable digital backbone, characterized by deep telecom penetration and widespread smartphone usage. This foundation is now necessitating a large-scale build-out of physical infrastructure, including data centers and their power systems. The country boasts extensive subsea cable connections and a developing national power grid, ensuring high bandwidth and secure energy supply.