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India’s data centre sector draws $173B since 2021: CBRE

·StartupReader editorial deskReviewed and Approved by Annie from StartupReader

CBRE reports that India’s data centre sector has attracted $173 billion in investments since 2021, reflecting strong investor confidence in the market’s growth potential.

The figure, disclosed by YourStory, shows the sector’s rapid expansion as demand for cloud services, AI workloads, and digital infrastructure rises. While the report does not break down the investments by type—whether equity, debt, or project financing—the volume suggests a bet on India’s role as a regional data hub. Earlier this year, one state positioned a city as a key location for data centres, though its policy lacked detailed guidelines on water use and clean energy, a gap that could shape future investment decisions.

The surge aligns with broader trends in India’s tech ecosystem. A World Bank report from October noted that private investment in AI has tripled, while deeptech funding rounds have grown larger, even as growth-stage investors remain cautious. Data centres, however, appear to be a safer play, benefiting from predictable demand and long-term contracts. TakeMe2Space’s planned orbital data centre, slated for a 2028 Falcon9 launch, hints at how infrastructure is evolving beyond traditional ground-based facilities.

What remains unclear is how these investments will translate into operational capacity. Regulatory hurdles, power costs, and sustainability mandates could slow deployment. For now, the numbers signal confidence—but execution will determine whether India’s data centre boom delivers on its promise.

Sources: yourstory.com

“The scale of capital flowing into India’s data centre sector signals long-term confidence in digital infrastructure demand, despite regulatory and sustainability questions.”
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