The data Centre market of India has started to grow after almost 2 years because of the new data localization rules as it requires the data generated in India to be stored within the country. It was a vital step taken by the government to stimulate innovation, data centre jobs, and appropriate real estate products. Today, the demand for data centre facilities is emanating from global cloud service providers. India is recognised as a interesting market for hyperscalers entities for next 5 years. Mumbai is known as the most popular destination for data centre by far having approx. 160 acres of land parcels in this micro market that are being marketed to data centre operators for potential sale and establishment of data centre parks. India is the best suited place for global data centre operators and also hyperscalers are actively committing investment in digital infrastructure in India, For example, Google has committed to invest $10 bn. Hence, the sector is growing more thereby attracting considerable capital and year 2020 will see even more such news. Many hyperscalers are actively committing investment in digital infrastructure in India and looking forward to construct large data facilities in major cities to service most of India. There is also much demand for rapidly increasing deployable smaller colocation data centres built closer to smaller cities.

The data centre operators and hyper scalers are investing largely on renewable energy with an increased demand for renewable energy in between 50-100% but they face challenges related to land acquisition. Despite this data centres industry is boozing up the power thereby creating no concerns as such except for immediate concerns on a robust generation and transmission infrastructure crucial to sustain industry's growth. Thus Government is working on the policies to support growth, such as the draft Data Centre Policy released in 2020 that aim to propel India into a global datacentre hub and promote huge investments in the sector.