Data Centres: The Infrastructure Powering India’s Next Economic Leap
by Mr. Mukesh Soni, CFO, Digital Connexion
For years, data centers were viewed as the digital equivalent of warehouses. This was invisible infrastructure built primarily to store enterprise information, support cloud migration, and ensure uptime. Today, however, data centers are increasingly being recognised as economic engines that directly shape GDP growth, capital formation, productivity expansion, and digital competitiveness.
The shift is especially visible in developed economies, where digital infrastructure has become foundational to national economic output. A 2025 J.P.Morgan study estimated that spending on data centers could contribute between 10-20 basis points to U.S. economic growth in 2025-2026. In Singapore, which became a regional cloud and hyperscale hub early in the digital transformation cycle, the contribution of the digital economy to growth has been increasing steadily.
This contribution stems not just from construction activity, but from downstream economic productivity enabled by cloud computing, AI services, and digital commerce. For instance,...
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