India’s data centre opportunity: A $1 trillion infrastructure play

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By Dnyanesh Nirwan, Managing Director at Alvarez & Marsal

India’s digital economy is creating one of the most significant infrastructure opportunities of the coming decades. A&M estimates that cumulative investment in the country’s data centre ecosystem could reach up to $1 trillion by 2047, with installed data centre capacity expanding from approximately 1.5 GW today to 10 GW by 2031, 19 GW by 2037 and 43 GW by 2047. The expansion will extend far beyond the construction of server halls. It will require large investments in campuses, power infrastructure, cooling systems, fibre networks, and compute hardware. The opportunity is already taking shape, with more than $50 billion of committed investments which are currently in different stages of development across the country.

A&M analysis of the market reveals that in the near term (2031), demand may be driven by cloud adoption, enterprise digitization, data localization, digital payments, GCC workloads, and the...

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