Driven by the artificial intelligence (AI) boom and rapid digital transformation, India's data centre value chain is projected to generate a potential order book of $280 billion by 2035, according to consulting firm PwC.
While direct investments to build core data centre facilities are estimated at $71.6 billion by 2035, the broader ecosystem offers a significantly larger opportunity.
India's installed capacity currently stands at approximately 1.6 GW and is expected to grow 8.5x to reach about 13.8 GW by 2035, the Indian arm of the global consulting firm said in a statement on Thursday.
The $280 billion potential order book spans multiple segments across the value chain. IT equipment, including chips, servers, and networking systems, will constitute the lion's share at 65-75 per cent of capital expenditure, translating to $180-210 billion, according to PwC India.
Electrical infrastructure and cooling systems are expected to generate order books of $18-26 billion and $15-20 billion, respectively.
The rising adoption of AI is fundamentally altering infrastructure requirements. Traditional air-cooled systems and thermal containments, which support workloads up to 12-18 kilowatts (kW), are proving insufficient, the statement added.
Hyperscale and enterprise AI workloads now demand direct liquid-to-chip cooling (up to 150 kW) and immersion-based cooling systems (over 150 kW), which are projected to capture the maximum share of future cooling infrastructure.
However, the sector faces risks related to its current procurement strategy. PwC noted a high dependence on imports for mechanical, electrical, and plumbing (MEP) components, which are long-lead items exposed to global supply chain disruptions and geopolitical tensions. There is also a heavy reliance on global original equipment manufacturers (OEMs) for after-sales support and parts.
To mitigate these risks and capitalise on the opportunity, PwC suggested introducing a Production-Linked Incentive (PLI) scheme specifically for data centre equipment manufacturing.
PwC also suggested establishing manufacturing clusters under the 'Make in India' programme, facilitating fast-track joint ventures between Indian companies and global OEMs and aggregating demand from the government and hyperscalers to provide predictable order books for manufacturers setting up facilities in the country.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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