ShutterstockGRI Data Centres India 2025
Key insights into infrastructure challenges, investment strategies, and growth opportunities
April 8, 2025Real Estate
Written by Isabella Toledo
India's data centre sector is on the brink of significant growth, but it faces challenges that could either hinder or drive its future development. With power constraints, cooling inefficiencies, and a lack of regulatory cohesion, the industry must overcome substantial roadblocks to fully unlock its potential.
One of the most pressing challenges is the need for reliable, cost-effective power, particularly as AI and hyperscale cloud deployments demand even greater energy supplies. To meet this, operators are integrating renewable solutions, improving energy efficiency, and solving connectivity issues to ensure continued expansion.
Meanwhile, sustainability is becoming a critical factor for tenants, with many now expecting data centres to meet strict environmental, social, and governance (ESG) standards. Centres that fail to integrate green solutions and high-efficiency systems risk losing contracts to competitors who prioritise ESG mandates.
As India looks to attract more investment, new financing models such as debt financing, Infrastructure Investment Trusts (InvITs), and hybrid financing structures are gaining traction, enabling faster, more scalable development.
Ultimately, the sector's success hinges on its ability to innovate and collaborate. From developers to investors, there is a shared recognition that overcoming energy, regulatory, and scalability challenges will determine who leads in the next phase of India's data centre expansion.
This report offers insights from GRI Data Centres India 2025, the GRI Club India conference that brought together top developers, investors, and operators to explore innovative strategies and share insights into the main challenges, biggest growth opportunities, and the exciting future of this rapidly-evolving sector.
Read the key takeaways from the meeting here.
India's data centre sector is on the brink of significant growth, but it faces challenges that could either hinder or drive its future development. With power constraints, cooling inefficiencies, and a lack of regulatory cohesion, the industry must overcome substantial roadblocks to fully unlock its potential.
One of the most pressing challenges is the need for reliable, cost-effective power, particularly as AI and hyperscale cloud deployments demand even greater energy supplies. To meet this, operators are integrating renewable solutions, improving energy efficiency, and solving connectivity issues to ensure continued expansion.
Meanwhile, sustainability is becoming a critical factor for tenants, with many now expecting data centres to meet strict environmental, social, and governance (ESG) standards. Centres that fail to integrate green solutions and high-efficiency systems risk losing contracts to competitors who prioritise ESG mandates.
As India looks to attract more investment, new financing models such as debt financing, Infrastructure Investment Trusts (InvITs), and hybrid financing structures are gaining traction, enabling faster, more scalable development.
Ultimately, the sector's success hinges on its ability to innovate and collaborate. From developers to investors, there is a shared recognition that overcoming energy, regulatory, and scalability challenges will determine who leads in the next phase of India's data centre expansion.
This report offers insights from GRI Data Centres India 2025, the GRI Club India conference that brought together top developers, investors, and operators to explore innovative strategies and share insights into the main challenges, biggest growth opportunities, and the exciting future of this rapidly-evolving sector.
Read the key takeaways from the meeting here.