The Indian data centre industry T has witnessed unprecedented growth in recent years, fuelled by post-covid digital adoption and a surging demand for cloud infrastructure. According to Cushman & Wakefield, India will require a total capacity of 5 GW to 6.9 GW in the near future, with an additional 1.7 GW to 3.6 GW of data centre projects already under construction or planning. "Even post such significant investments, we expect continued growth due to additional demand from artificial

intelligence-related workloads, solidifying India's position as a global data centre destination," says Vivek Dahiya, MD & head -data centre advisory team, Asia Pacific, Cushman & Wakefield. This dynamic ecosystem, driven by the proliferation of deep technologies across industries, has significantly boosted data centre growth. CBRE reports a capacity addition of over 180 MW between January and September 2024. Cities like Mumbai and Chennai lead the supply side, followed by tier-I markets such as Delhi-NCR, Pune and Hyderabad.

Anshuman Magazine, chairman & CEO, CBRE India, South-East Asia, Middle East & Africa, emphasises the transformative role of Al in this sector. "The increasing adoption of Al and high-performance computing infrastructure will likely drive demand for high-density data centre infrastructure to support advanced IT workloads. Sustainability will remain a critical focus as data centres address the challenges of aging infrastructure and adhere to ESG (environmental, social and governance) requirements while meeting increased demand," he explains.

Rajeev Ranjan, co-founder & CEO. The Mentors Real Estate Advisory, foresees this growth sparking demand for specialised spaces, boosting property values in urban and tech-driven regions.

"This growth is further supported by favourable government policies, making India an attractive destination for tech innovation and data-driven industries," he notes.

Adding to this trajectory.

international collaborations like India's partnership with NVIDIA to develop 'Sovereign Al' are pivotal. Vinay Jirgale, CTO, MEG-Nxt, a product division of Ceinsys, highlights how such initiatives bolster India's autonomy over Al technologies and enhance its global digital presence, reinforcing its position as a leader in the digital economy.

The growing interest of both global and domestic companies in Indian data centres highlights their significance. "This dynamic environment is set to drive significant demand for end-to-end data centre development, establishing it as a vital new real estate asset with immense potential for growth," asserts Dr Niranjan Hiranandani, chairman, NAREDCO.

Mohit Goel, MD, Omaxe Ltd, underscores the deep impact on the real estate industry. "From IT parks to mixed-use developments with robust digital connectivity, real estate players must adapt to this digital-first economy, crafting spaces that cater to evolving tech requirements," he suggests.

Meanwhile, tler-II and III cities are emerging as prime destinations for data centre development due to cost-effective land availability and improving connectivity, says Aditya Kushwaha. CEO and director, Axis Ecorp.

Although high capital costs and regulatory barriers present challenges, Gaurav Mavi, co-founder, BOP.in, believes the synergy between Al, data centres. and real estate positions India as a pivotal player in enabling the country's digital economy.