Union Budget 2025 | Indian data centre market expected to grow to Rs 1,00,460 crore by 2032: Economic Survey

The survey said that India's data centre market is experiencing substantial growth, fuelled by the expansion of infrastructure and an increasing demand for digital services.

New Delhi: India's data centre market is projected to expand from Rs 38,971 crore ($4.5 billion) in 2023 to Rs 1,00,460 crore ($11.6 billion) by 2032, according to the Economic Survey 2024-25, which was tabled in Parliament on Friday.

India's data centre market is experiencing substantial growth, fuelled by the expansion of infrastructure and an increasing demand for digital services, the survey said.

"The data centre market in India is expected to grow from USD 4.5 billion in 2023 to Rs 1,00,460 crore ($11.6 billion) by 2032, at a CAGR of 10.98 per cent," the document said.

India benefits from lower construction costs on account of its well-established IT and digitally enabled services ecosystem, as well as relatively affordable real estate with a median of Rs 58 crore ($6.8 million) per MW in 2023, compared to Rs 79 crore ($9.17 million) in Australia, Rs 110 crore ($12.73 million) in Japan, and Rs 97 crore ($11.23 million) in Singapore, it said.

According to the survey, India's colocation data centre capacity reached 977 MW in 2023. An additional capacity of 258 MW led to a 105 per cent year-on-year growth.

"The total capacity under construction for 2024-2028 is 1.03 GW, with an additional 1.29 GW planned," the survey said.

Further, it informed that the government has empanelled 23 public and private cloud service providers to address the cloud needs of user departments, under the GI Cloud initiative, known as MeghRaj.

As of November 30, 2024, the National Informatics Centre supports 1,917 applications on its cloud, it said.

The Economic Survey is an annual report presented by the government prior to the Union Budget, which assesses the state of the economy. It is prepared by the Economic Division within the Department of Economic Affairs, part of the Ministry of Finance, under the guidance of the Chief Economic Adviser.

The Union Budget for 2025-26 will be presented by the Finance Minister Nirmala Sitharaman on Saturday.

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.