GIVA raises $100M in Multiples-led round; India’s Rs 3 lakh Cr data centre buildout

India's data centre industry is on track for a five-fold expansion in installed capacity by 2030, reaching approximately 7.5 gigawatts (GW), according to Crisil Ratings. This surge, driven by generative artificial intelligence (GenAI), enterprise digitalisation and increased data consumption, is expected to attract investments exceeding Rs 3 lakh crore over the next four years.

The industry's capacity growth is already being solidified through long-term contracts, with nearly half of the upcoming capacity already secured under agreements. This contractual commitment helps mitigate speculative development and reduces the risk of off-take.

The surge in demand, particularly from global hyperscalers, is a key factor supporting investment decisions and minimizing off-take uncertainty. India's competitive cost structure, which is around 20 per cent lower than other Asia-Pacific markets, further enhances its appeal. Development costs in India are approximately one-fifth lower than in competing markets due to more affordable land, construction, and labour expenses.

Additionally, the availability of large campuses powered by renewable energy, combined with lower power tariffs, results in rental rates that are 30-35 per cent lower than in peer markets. These factors make India an attractive destination for hyperscalers aiming to meet their sustainability goals.

However, the rapid expansion of data centres is placing significant pressure on the power infrastructure. Crisil estimates that nearly three-quarters of the additional capacity will be concentrated in Visakhapatnam, Mumbai, and Hyderabad by fiscal 2030. This concentration could result in these cities' data centre capacity accounting for approximately 80%, 60%, and 20% of their current peak electricity demand, respectively.

As a result, timely grid connectivity and transmission capacity augmentation will be crucial to prevent delays and cost overruns in the commissioning process.