Sector Analysis: Is India poised to become a ₹20,000 Cr data centre powerhouse by FY28?

India’s data centre industry is set for strong expansion, with revenues expected to reach nearly Rs. 20,000 crore by FY28. According to Crisil, this rise will be driven by a steady compound annual growth rate of 20-22 percent between FY26 and FY28. 

This rapid growth is being driven by the increasing use of cloud services, AI-based workloads, and the surge in digital consumption across the country. Ratings agency Crisil reports that the next three years will be crucial as operators add capacity and meet the growing demand from enterprises and retail users.

To keep up with this momentum, India’s data centre capacity is projected to more than double to 2.3-2.5 GW by March 2028. A large share of this growth will come from a new supply of 1.1-1.3 GW expected to go live between FY26 and FY28. This expansion is supported by rising cloud adoption, investments in high-density infrastructure, and the rollout of 5G.

However, India continues to lag behind global data centre density levels, at just ~65 MW per exabyte, compared with countries like the UK (3,333 MW per exabyte) and the US (2,500 MW per exabyte). This gap indicates strong potential for further expansion as digital usage grows.

Crisil also expects capital expenditure of Rs. 55,000-Rs. 65,000 crore over FY26-FY28, highlighting the scale of investment required. Despite this, operators are likely to benefit from stable cash flows, long-term customer contracts, and rising demand from hyperscalers.

Largest Data Centre Operators in India

NTT Global Data Centres

NTT is India’s largest data centre operator, running multiple large facilities across major cities like Mumbai, Delhi, and Bengaluru. The company keeps expanding its capacity with huge investments to meet growing demand from cloud companies, banks, and tech firms. It is known for building some of the biggest and most advanced data centres in the country.

ST Telemedia Global Data Centres (STT GDC)

STT GDC is one of India’s fastest-growing operators, owning several data centres nationwide. The company invests heavily in upgrading its infrastructure and adding new buildings. It focuses on providing secure, high-quality services for big enterprises and digital businesses.

Nxtra Data (Airtel)

Nxtra, owned by Bharti Airtel, operates many data centres across India and is expanding rapidly. Airtel has been investing thousands of crores to build new campuses and support cloud services, telecom networks, and enterprise customers.

Microsoft

Microsoft runs its own cloud data centres in India to support Azure services used by businesses and government organisations. The company keeps increasing its capacity as AI and cloud usage grow, making it a major player in India’s digital ecosystem.

AdaniConneX

AdaniConneX, a joint venture between Adani Group and EdgeConneX, is developing large data centre parks across India. They are investing heavily to build sustainable and energy-efficient facilities to support hyperscale demand.

Lumina Cloudinfra

Lumina Cloudinfra focuses on building large, modern data centres, mainly targeting cloud companies and digital businesses. The company continues to invest in expanding its footprint with energy-efficient designs.

CtrlS Datacenters

CtrlS is known for running highly secure, Tier-4 certified data centres in several cities. The company invests in strong safety, power backup, and high-quality infrastructure for enterprises needing reliable services.

Sify Technologies

Sify operates several data centres and provides cloud, network, and IT services. The company invests in expanding its centres and offers end-to-end digital solutions for businesses.

Web Werks

Web Werks partners with Iron Mountain to build and operate data centres across India. They are expanding quickly in cities like Mumbai, Pune, and Bengaluru, with new facilities focused on cloud and enterprise customers.

Yotta Infrastructure

Yotta, part of the Hiranandani Group, builds very large, high-capacity data centre parks. The company invests heavily in technology and aims to offer affordable, scalable services to cloud companies and enterprises.

Written By – Nikhil Naik

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