
- The Indian data center industry is expected to attract investments of up to Rs 45,000 crore by the end of FY26 due to rising demand for data and storage services.
- Factors driving this surge in investments include the adoption of cloud solutions by large enterprises, increased use of Over-The-Top (OTT) platforms, and the rapid growth in mobile data traffic.
- Regulatory requirements for local data storage and the introduction of 5G services are further boosting the demand for data centers.
- Mumbai is a preferred location for these investments, with Mumbai’s advantages including sub-sea cable landing stations, proximity to large enterprises, low latency, and reliable electricity supply.
- While increased investments and competition may lead to higher financial leverage, large established data center operators are expected to maintain strong credit profiles due to long-term customer contracts and cash flow visibility.