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Jeet B Bhayani (SEBI RA)

29th Oct · SEBI-Registered Analyst

India's data center (DC) capacity is expected to double due to current construction initiatives and could increase five times by 2030 if the proposed projects are expedited, as stated in a report by Macquarie Equity Research. The report emphasized that India presently possesses 1.4 gigawatt (GW) of active DC capacity, an additional 1.4 GW is being constructed, and roughly 5 GW is in the planning stage. This growth is fueled by elements like data localization regulations, favorable government initiatives, financial support, and rising cloud usage. The report projected that the DC sector’s portion of India's electricity demand might increase to 1.9-3.2% by 2030, growing from 0.8% in 2024. The total capital expenditure, not including servers, is anticipated to fall between Rs. 2,64,930 crore (US$ 30 billion) and ₹. 3,97,395 crore (US$ 45 billion) in the upcoming five years. Recent updates feature Google’s Rs. Investment of 1,32,465 crore (US$ 15 billion) in an AI infrastructure center in Visakhapatnam with Adani Group and Tata Consultancy Services' Rs. A plan of 57,402 crore (US$ 6.5 billion) to establish a 1 GW DC network, along with Jio’s comprehensive integrated green AI DC project in Jamnagar in collaboration with Meta and Google. Amazon Web Services (AWS) has committed Rs. 1,14,803 crore (US$ 13 billion) to enhance its cloud capacity in India by the year 2030. Mumbai accounts for almost 40% of India's overall DC capacity, with Chennai contributing 20%, highlighting India's growing significance in the international digital infrastructure arena

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