&w=3840&q=100)
India's data centre capacity to hit 3GW by 2030 on investment surge: Report
The sector is also seeing a surge in annual investments, currently at $1-1.5 billion (around Rs 12,870 crore), and this figure is expected to double in the coming years, according to the report A Multi-Year Growth Proxy on India's Data Explosion and Localisation Wave by Avendus Capital.
The data centre capacity of the country was estimated at 1.1 GW in 2024.
Rising data consumption, AI and cloud adoption, and policy initiatives focused on data localisation are the main drivers of data centre demand, the report stated. The demand is expected to reach around 6 GW by 2033, but the supply is expected to be only 4.5 GW, leaving a gap of 1.5 GW.
Much of the demand is expected to be met through large-format, hyperscale-ready infrastructure in core markets, alongside edge-ready capacity in Tier 2 and Tier 3 cities for latency-sensitive workloads, the report said, projecting a 25-30 per cent compound annual growth rate (CAGR) for the sector.
The report further said that subsidised land banks and electricity duty exemptions by various state governments are emerging as key enablers for accelerating data centre capacity expansion across India.
While established leaders such as STT GDC and Sify continue to anchor the market, new entrants are gearing up to meet the rising enterprise demand.
Delhi-NCR-based infrastructure and real estate player Anant Raj has planned capital expenditure of $2.1 billion (around Rs 18,000 crore) to achieve an operational capacity of 307 MW by 2031-2032, up from 28 MW of IT Load in 2025-26.
With the advantage of pre-zoned sites, strong government policies, robust power access, and connectivity, we are well-positioned to meet the rising enterprise and hyperscaler, cloud-infrastructure as a service demand from both public and private sector clients, Anant Raj Ltd Managing Director Amit Sarin said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Key Takeaways: • Tensions between Cambodia and Thailand had been simmering since May, when they skirmished at a contested area of the border, leading to the death of a Cambodian soldier. • Nationalist rhetoric in both countries and a series of tit-for-tat actions followed. Cambodia banned the import of Thai fruits and broadcast of Thai films and soap operas; Thailand closed all land crossings. • Recently, Thailand withdrew its ambassador from Cambodia and expelled the Cambodian envoy after a Thai soldier lost a leg in a land mine blast. Thailand claimed the mine was laid by Cambodian troops in Thai territory. • Cambodia responded by downgrading diplomatic relations and recalling all Cambodian staff from its embassy in Bangkok. Clashes broke out at half a dozen places along the border between the Thai provinces of Surin and Sisaket, and Cambodian provinces of Oddar Meanchey and Preah Vihear. • Thailand launched air strikes on Cambodian military sites, and Cambodia responded with rocket and artillery fire. Exchanges of artillery and machine gun fire followed, in which at least 35 people were killed and more than 2.6 lakh civilians were displaced on both sides of the border, Reuters reported. Do You Know: • The 817-km land border between Cambodia and Thailand was drawn in 1907 by France, then the colonial power in Cambodia. Like many other borders drawn by colonial administrators, this too has long been disputed. • The two predominantly Theravada-Buddhist neighbours are more alike than any other country in the region, sharing ethnic and linguistic ties, social norms, culinary traditions, and cultural activities. But both claim to be the 'original' owners of their heritage. This is what drives the animosity between them. • The competing claims of cultural ownership are rooted in contesting readings of history, which, scholars say, are purposely propped up by governing elites of the two countries to strengthen their domestic positions. 'Countries fabricate history to celebrate their past, using nationalism as a political tool in the manipulation of public opinion… It is evident that contemporary Thai-Cambodian relations have become a casualty of the remade past,' wrote Charnvit Kasetsiri, Pou Sothirak and Pavin Chachavalpongpun in Preah Vihear: A Guide to the Thai-Cambodian Conflict and Its Solutions (2013). • At the centre of the border dispute is the Preah Vihear temple, which is called Phra Viharn in Thai. 'The temple has meaning — both as a cultural symbol and a religious place of worship — to people on both sides of the border,' John D Ciorciari, a professor of international politics at Indiana University, wrote in his 2009 paper 'Thailand and Cambodia: The Battle for Preah Vihear'. • Preah Vihear temple is the most famous of many disputed sites at the Cambodia-Thailand border which hold cultural significance for both countries. Another such temple, called Prasat Ta Moan Thom by the Cambodians and Prasat Ta Muen Thom by the Thai, witnessed fighting during the recent hostilities. Other Important Articles Covering the same topic: 📍Thailand, Cambodia agrees on ceasefire deal after five days of battle Power of rebasing: How Nigeria's GDP jumped from No. 58 to No. 55 in a day Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies II: Effect of policies and politics of developed and developing countries on India's interests. What's the ongoing story: Until July 20, Nigeria was the 58th largest economy in the world. A day later, it rose three spots to the 55th rank, overtaking Ukraine, Qatar, and Hungary in the process as it added more than $50 billion, or roughly 30 per cent of its GDP, in 2024. Key Points to Ponder: • What is the concept of GDP rebasing? • What is the GDP base year? • Why GDP base year is rebased? • How can changing the base year impact nominal GDP figures? • What are the pros and cons of GDP rebasing exercises? • What is the base year for the GDP, IIP and CPI? • What are the considerations for the new base year? • How is a base year chosen? Key Takeaways: • On July 21, Nigeria's National Bureau of Statistics (NBS) published the results of its GDP rebasing exercise, which saw the base year of the indicator being updated to 2019 from 2010, among other changes. The result? Nigeria's GDP in 2024 is now estimated at $243 billion in nominal terms, up from $187 billion forecast by the International Monetary Fund (IMF). • A new base year – which essentially means measurement of GDP, or the final value of goods and services in any particular year, with respect to the prices prevailing in that year – does not automatically lead to a larger economy. However, Nigeria's base-year revision exercise included other more meaningful changes in the manner in which the African nation calculates the GDP. • This included increasing the scope of its methodology to include previously undercounted sectors such as digital services, pension fund operations, and e-commerce activities, among others, in what the NBS has called 'by far the most comprehensive rebasing' it has ever carried out. As the NBS said, technological development, structural changes, and changes in production and consumption patterns mean 'the methods and data used in estimating GDP must change with the times to reflect current economic realities'. • This is not the first time Nigeria has seen such a huge increase in its GDP due to the base year revision. More than a decade ago, change in the base year from 1990 to 2010 had helped propel Nigeria to the position of Africa's largest economy thanks to an even-larger 89 per cent increase in the GDP to $510 billion in 2014. Do You Know: • While the rebasing brings Nigeria $50 billion closer to achieving the government's target of becoming a $1 trillion economy by 2030, the objective is well-nigh impossible after the Nigerian currency, the naira, was devalued sharply in 2023 and 2024. The result was that the naira fell by 49 per cent against the US dollar in 2023 and another 41 per cent in 2024. • The GDP rebasing also brought into spotlight changes in the Nigerian economy that will not make for happy reading. One, the share of agriculture in the country's GDP had increased to almost 26 per cent in 2019 from 22 per cent estimated earlier, while that of industry declined sharply to 21 per cent from 27.65 per cent. Two, the contribution of the informal sector to the GDP has increased to 42.5 per cent from 41.4 per cent. • India, of course, is no stranger to GDP revisions; in fact, the Ministry of Statistics and Programme Implementation (MoSPI) is currently in the process of updating the GDP base year to 2022-23 from 2011-12. The rebased GDP numbers will be released in February 2026. • The last time India's key macroeconomic indicator underwent a major revision was in 2015, when questions were raised about the accuracy of the numbers even by the Reserve Bank of India (RBI) after the GDP growth rate for 2013-14 was initially revised upwards to 6.9 per cent from 4.7 per cent, prompting Raghuram Rajan – then the governor – to comment that the Indian central bank found it 'hard to see the economy as rollicking in 2013-2014'. Other Important Articles Covering the same topic: 📍Why govts revise GDP base year and methodology, why the proposed 2026 revision matters for India's global standing Previous year UPSC Main Question Covering similar theme: 📍Explain the difference between computing methodology of India's Gross Domestic Product (GDP) before the year 2015 and after the year 2015. (2021) ECONOMY EU trade talks: India to offer regulatory certainty in manufacturing to woo FDI Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests. What's the ongoing story: In the first such offer made during trade deal negotiations, India is working on a 'new chapter' aimed at extending long-term regulatory certainty in the domestic manufacturing sector to attract investment from the European Union (EU), The Indian Express has learnt. Key Points to Ponder: • Define 'regulatory certainty' in the context of FDI. • Why offering 'regulatory certainty' in manufacturing can help India attract EU investments? • Know the rationale behind India and the EU sharing concerns about China's manufacturing overcapacity. • What constraints or conditions is India proposing along with 100% FDI in manufacturing sectors under the EU deal? • How India's 2016 termination of its BITs impacted investor confidence? • Know the strategic significance of including non-services (manufacturing) investment chapter in the India EU FTA. Key Takeaways: • This comes in the backdrop of shared concerns between India and the EU over Chinese overcapacity, which is viewed as a threat to domestic manufacturing of critical products such as pharmaceuticals, electronics and defence requirements, among others. • 'In the EU deal, one of the new chapters that has come in is about investment in non-services, which is a new element where they (EU) are looking at certainty on the commitments for FDI in non-services sectors — basically the manufacturing sector,' a senior government official said. 'There are two parts to it. One is deciding on sectors where India will allow 100 per cent FDI. • Second, there are a number of conditions on things such as 'local employment', 'local value addition', 'use of local raw materials' and conditions around whether there will be local partners and joint ventures or not,' the official said. • This comes as India has begun seeking to attract investments from Western countries in exchange for lowering tariffs on key sectors. For instance, India has allowed 100 per cent FDI in telecom for the UK under the trade deal. In the insurance sector, the FDI ceiling has been kept at 74 per cent, providing investment certainty for UK insurers. A similar strategy was followed in the European Free Trade Association (EFTA) deal. Do You Know: • India and the four-nation EFTA — an intergovernmental grouping comprising Iceland, Liechtenstein, Norway and Switzerland — signed a trade pact in March 2024, under which EFTA countries have committed to investing $100 billion in India over a 15-year period. However, officials indicated that the investment chapter in the EU deal would be far more extensive and legally robust. • India and the EU have both been facing several challenges, particularly in the renewable energy sector. Another government official told The Indian Express that the Indian industry has been encountering pricing challenges, especially while trying to scale up the solar energy sector, and that India will have to work with 'Western countries' to achieve competitiveness and tackle the China challenge. • According to a parliamentary report released last year, the EU is concerned about China's dominance in critical technologies, as China holds a leading global manufacturing position in several areas, exposing the EU to potential risks. The EU has said these sectors include raw or processed materials for robotics, as well as clean technologies including solar PV wafers, EV batteries and wind turbine blades. • An EU trade deal status report earlier this month stated that India and the EU had made substantial progress on the text dealing with 'services and investment', marking a significant step forward towards concluding the Free Trade Agreement (FTA) that both sides aim to sign by the end of the year. • The EU report also noted that negotiators had made substantial progress on the investment text, and that they had also made very good progress on rules for state-to-state mediation. Progress on dispute settlement is significant, as it suggests a breakthrough on long-standing EU concerns regarding investment protection in India. Other Important Articles Covering the same topic: 📍India, EU look to seal trade deal this year, Trump keeps markets reeling Previous year UPSC Main Question Covering similar theme: 📍The expansion and strengthening of NATO and a stronger US-Europe strategic partnership works well for India. What is your opinion about this statement? Give reasons and examples to support your answer. (2023) PRELIMS ANSWER KEY 1.(b) For any queries and feedback, contact Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. Priya Kumari Shukla is a Senior Copy Editor in the Indian Express (digital). She contributes to the UPSC Section of Indian Express (digital) and started niche initiatives such as UPSC Key, UPSC Ethics Simplified, and The 360° UPSC Debate. The UPSC Key aims to assist students and aspirants in their preparation for the Civil Services and other competitive examinations. It provides valuable guidance on effective strategies for reading and comprehending newspaper content. The 360° UPSC Debate tackles a topic from all perspectives after sorting through various publications. The chosen framework for the discussion is structured in a manner that encompasses both the arguments in favour and against the topic, ensuring comprehensive coverage of many perspectives. Prior to her involvement with the Indian Express, she had affiliations with a non-governmental organisation (NGO) as well as several coaching and edutech enterprises. In her prior professional experience, she was responsible for creating and refining material in various domains, including article composition and voiceover video production. She has written in-house books on many subjects, including modern India, ancient Indian history, internal security, international relations, and the Indian economy. She has more than eight years of expertise in the field of content writing. Priya holds a Master's degree in Electronic Science from the University of Pune as well as an Executive Programme in Public Policy and Management (EPPPM) from the esteemed Indian Institute of Management Calcutta, widely recognised as one of the most prestigious business schools in India. She is also an alumni of Jamia Milia Islamia University Residential Coaching Academy (RCA). Priya has made diligent efforts to engage in research endeavours, acquiring the necessary skills to effectively examine and synthesise facts and empirical evidence prior to presenting their perspective. Priya demonstrates a strong passion for reading, particularly in the genres of classical Hindi, English, Maithili, and Marathi novels and novellas. Additionally, she possessed the distinction of being a cricket player at the national level. Qualification, Degrees / other achievements: Master's degree in Electronic Science from University of Pune and Executive Programme in Public Policy and Management (EPPPM) from Indian Institute of Management Calcutta ... Read More
