Fri Jan 31 09:34:07 UTC 2025: ## India’s Data Center Market to Boom, Reaching $11.6 Billion by 2032: Economic Survey
**New Delhi, January 31, 2025** – India’s data center market is poised for explosive growth, according to the Economic Survey 2024-25, tabled in Parliament today. The survey projects the market to expand from $4.5 billion in 2023 to a staggering $11.6 billion by 2032, representing a compound annual growth rate (CAGR) of 10.98%.
This significant expansion is driven by increasing demand for digital services and the expansion of supporting infrastructure. India’s competitive advantage lies in lower construction costs, thanks to its robust IT ecosystem and relatively affordable real estate. The average cost per megawatt (MW) in India was $6.8 million in 2023, significantly lower than in countries like Australia ($9.17 million), Japan ($12.73 million), and Singapore ($11.23 million).
The survey highlighted impressive growth in colocation data center capacity. In 2023, India reached 977 MW, a 105% year-on-year increase fueled by an additional 258 MW. Further expansion is planned, with 1.03 GW currently under construction and an additional 1.29 GW planned for 2024-2028.
The government’s commitment to bolstering the sector is evident in the MeghRaj initiative. This program has empanelled 23 public and private cloud service providers to meet the cloud computing needs of government departments. As of November 30, 2024, the National Informatics Centre supported 1,917 applications on its cloud platform.
The Economic Survey, an annual assessment of the Indian economy prepared by the Ministry of Finance, also projected GDP growth for fiscal year 2026 to range between 6.3% and 6.8%. The Union Budget for 2025-26, which will be presented tomorrow, is expected to further detail the government’s plans for supporting this burgeoning sector.
First Piper 