Blitz Bureau
NEW DELHI: India’s digital transformation market is projected to reach $229.59 billion by 2029 due to rapid artificial intelligence (AI) adoption, cloud computing, enterprise digitisation and the expansion of digital public infrastructure, according to a report released on August 10.
According to a report by smallcase, India’s digital infrastructure sector is entering a period of significant expansion, with the country emerging as a potential global hub for AI-ready data centre infrastructure.
It further noted that the country’s digital transformation market is estimated to grow at a compound annual growth rate of 20.63-32.1 per cent through 2029.
The country’s operational data centre capacity is expected to cross 2 GW by the end of 2026, compared with around 1.6 GW currently, supported by more than $30 billion in confirmed capital expenditure and an investment pipeline of nearly $60 billion.
By 2030, operational data centre capacity could expand to 4.5-7 GW, with some industry estimates putting the potential at around 7.5 GW as AI and cloud investments accelerate, the report said.
It also highlighted that the Ministry of Electronics and Information Technology (MeitY) has expected a total investment in India’s data centre ecosystem to exceed $200 billion with nearly $70 billion already at various stages of construction.
“With an investment pipeline exceeding $200 billion, supportive government policies, a strong engineering talent base and rapidly expanding digital public infrastructure, the country is building the foundation to become a global AI infrastructure hub,” said Naveen KR, smallcase manager and Senior Director, Windmill Capital.
