Invisible Ceiling Halts India's Data Centre Expansion
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India's Data Centre Boom Faces 'Invisible Ceiling' Despite Rapid Growth
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CNBC TV18•02-04-2026, 12:51
India's Data Centre Boom Faces 'Invisible Ceiling' Despite Rapid Growth
•India's data centre sector is experiencing rapid growth, driven by digitization and AI, with capacity projected to reach 4 GW by 2030.
•Despite cost advantages over markets like the US and China, rising power infrastructure costs, land prices, and AI-ready deployments are increasing building expenses.
•The primary constraint is not capital but infrastructure readiness, particularly reliable power transmission and distribution, which lags behind generation capacity.
•Key markets like Mumbai, Chennai, Delhi-NCR, and Bengaluru, accounting for 90% of tier-I capacity, face significant transmission bottlenecks.
•Solutions include real-time transmission capacity portals, dedicated data centre parks with pre-built electrical backbones, and on-site storage solutions.