<p>Bengaluru: <a href="https://www.deccanherald.com/tags/artificial-intelligence">Artificial Intelligence</a>-led infrastructure demand alongside rising cloud and digital adoption is expected to nearly triple the country's built data centre capacity from 1.6 GW in 2025 to about 5 GW by 2030. </p><p>According to investment bank Avendus Capital's latest report, developers currently have an active pipeline of over 3 GW, including about 1 GW of AI data centre capacity, requiring a total capital investment of nearly $25 billion over the next five years.</p><p>The report also said that rising AI adoption could drive deployment of 650,000 to 700,000 GPUs (Graphics Processing Units) in the country's data centres over the next five years, creating a $23 billion investment opportunity. With this, the country's data centre capacity is set to grow at a 26 per cent CAGR over the next five years.</p><p>While <a href="https://www.deccanherald.com/tags/mumbai">Mumbai </a>currently accounts for approximately 50 per cent of India's total data centre capacity, Chennai remains the second most preferred location in the country, due to its strategic location benefits. Hyderabad is also developing into a major destination for both colo and hyperscaler self-build projects.</p>.AI could add more than $500 billion to India's economy by 2030.<p>According to the report, 47 per cent of the total additional capacity over the next five years in India is likely to be in Mumbai.</p><p>Vaibhav Garg, Director, Infrastructure and Real Assets Investment Banking, Avendus Capital and chief author of the report, said, “AI adoption is emerging as a significant catalyst for next-generation infrastructure investments in data centres, alongside sustained demand from cloud and digital workloads. This dual demand trajectory has already translated into $5 billion of transaction activity over the last three years, with backing from global institutional investors, infrastructure funds, and strategic operators."</p><p>Garg said, "Going forward, they also expect public markets and other strategic transactions to play a key role in funding the country's data centre growth, with 3-4 IPOs expected in the next three years."</p><p>The report also highlighted rising private market activity in the sector, with global data centre transactions currently being consummating at EBITDA multiples of 20–30x. REITs and InvITs are increasingly being explored as capital recycling structures, given the sector’s long-term contracts and stable cash flow profile.</p><p>Highlighting the demand, the report said the country's AI market is projected to grow from $13 billion in 2025 to $131 billion by 2032 at a 39 per cent CAGR, supported by rising enterprise adoption and investments in domestic AI capabilities, including the development of indigenous large language models (LLMs).</p>
<p>Bengaluru: <a href="https://www.deccanherald.com/tags/artificial-intelligence">Artificial Intelligence</a>-led infrastructure demand alongside rising cloud and digital adoption is expected to nearly triple the country's built data centre capacity from 1.6 GW in 2025 to about 5 GW by 2030. </p><p>According to investment bank Avendus Capital's latest report, developers currently have an active pipeline of over 3 GW, including about 1 GW of AI data centre capacity, requiring a total capital investment of nearly $25 billion over the next five years.</p><p>The report also said that rising AI adoption could drive deployment of 650,000 to 700,000 GPUs (Graphics Processing Units) in the country's data centres over the next five years, creating a $23 billion investment opportunity. With this, the country's data centre capacity is set to grow at a 26 per cent CAGR over the next five years.</p><p>While <a href="https://www.deccanherald.com/tags/mumbai">Mumbai </a>currently accounts for approximately 50 per cent of India's total data centre capacity, Chennai remains the second most preferred location in the country, due to its strategic location benefits. Hyderabad is also developing into a major destination for both colo and hyperscaler self-build projects.</p>.AI could add more than $500 billion to India's economy by 2030.<p>According to the report, 47 per cent of the total additional capacity over the next five years in India is likely to be in Mumbai.</p><p>Vaibhav Garg, Director, Infrastructure and Real Assets Investment Banking, Avendus Capital and chief author of the report, said, “AI adoption is emerging as a significant catalyst for next-generation infrastructure investments in data centres, alongside sustained demand from cloud and digital workloads. This dual demand trajectory has already translated into $5 billion of transaction activity over the last three years, with backing from global institutional investors, infrastructure funds, and strategic operators."</p><p>Garg said, "Going forward, they also expect public markets and other strategic transactions to play a key role in funding the country's data centre growth, with 3-4 IPOs expected in the next three years."</p><p>The report also highlighted rising private market activity in the sector, with global data centre transactions currently being consummating at EBITDA multiples of 20–30x. REITs and InvITs are increasingly being explored as capital recycling structures, given the sector’s long-term contracts and stable cash flow profile.</p><p>Highlighting the demand, the report said the country's AI market is projected to grow from $13 billion in 2025 to $131 billion by 2032 at a 39 per cent CAGR, supported by rising enterprise adoption and investments in domestic AI capabilities, including the development of indigenous large language models (LLMs).</p>
