CBRE, a leading real estate advisory firm, has predicted that investment in AI-powered data centres in India will reach a staggering $100 billion by 2027. India attracted $60 billion in data centre investment between 2019 and 2024 with Maharashtra and Tamil Nadu attracting considerable interest due to suitable state policies and infrastructure. 

This ascending adoption of AI across different sectors contributes to the boom in data centres. The colocation market of India’s data centres is projected to rise at a CAGR (compound annual growth rate) of 24.68% from 2023 to 2029.

The Indian government and private sector collaboration is fueling the growth of data centres. Maharashtra, Tamil Nadu, and Telangana adopted data centre policies early and considered them ‘essential services’. Madhya Pradesh launched India’s first AI data centre and Andhra Pradesh partnered with Google to build one.

Talking about private sector investments, Aurum Equity invested $400 million in a green AI data centre in Hyd.erabad. Nxtra by Airtel leverages AI for efficiency and sustainability in its Chennai facility.

As AI algorithms require immense computational resources for training and operation, robust and scalable data centre infrastructure is needed.

Strategic planning of government and industry stakeholders and their harmonious collaboration are the keys to propelling India to a new era of digital leadership and fostering economic growth, and sustainable development.

Source: https://indiaai.gov.in/article/india-s-ai-powered-data-centre-boom-100-billion-investment-forecast-by-2027-cbre