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News18
an hour ago
- Business
- News18
India's Edge Data Centre Capacity Set To Triple By 2027: Report
Reported By : Last Updated: July 25, 2025, 12:15 IST Currently, edge data centres account for about 5% of India's total data centre capacity. India's edge data centre industry is poised for exponential growth, with capacity projected to triple to 200-210 megawatts (MW) by 2027 from the current 60-70 MW, according to the latest report by credit rating agency ICRA. This surge is expected to be driven by the rapid adoption of emerging technologies such as the Internet of Things (IoT), 5G, augmented and virtual reality (AR/VR), and generative artificial intelligence (AI). Edge data centres are smaller, decentralised facilities located closer to end-users and devices. Unlike traditional centralised data centres, which are typically large and centralised, edge facilities enable real-time data processing with minimal latency (the delay between a user action and the corresponding system response). This makes them ideal for supporting emerging technologies such as IoT, 5G, AR/VR, and GenAI. These new-age applications and technologies are forecasted to grow significantly in the medium term, resulting in an increased demand for edge data centres. Currently, edge data centres account for about 5% of India's total data centre capacity. However, when excluding capacity used for captive purposes by a major player, the share drops to as low as 1%. ICRA expects this figure to grow significantly, with edge data centres expected to make up 8% of the total capacity by 2027. P: Projected (Source: ICRA Research) 'Edge data centres differ from traditional data centres in multiple parameters like size, location, scale, time taken to construct, capex cost per MW, and proximity to the end user," said Anupama Reddy, vice-president and co-group head (corporate ratings) at ICRA. 'In the Indian context, traditional data centres and edge data centres are complementary pillars of digital infrastructure." Reddy said India's data infrastructure will increasingly adopt a 'hub-and-spoke' model. Traditional data centres will continue to support large-scale computing and AI workloads, while edge data centres will handle real-time, location-sensitive operations in sectors such as healthcare, banking, agriculture, Defence, and manufacturing. Globally, edge data centres are estimated to account for around 10% of the total data centre capacity, which stood at 50 gigawatts (GW) as of December 2024. The United States currently dominates the global edge data centre market with a 44% share, followed by the Europe-Middle East-Africa (EMEA) region at 32%, and the Asia-Pacific (APAC) region at 24%. India remains a relatively new entrant but is expected to accelerate its adoption in the coming years. Despite a promising outlook, the growth of edge data centres is not without challenges. Security vulnerabilities are a concern due to their deployment in remote Tier II and Tier III cities. Moreover, a shortage of skilled professionals in these regions, rapid technological shifts that could render infrastructure obsolete, and interoperability issues with traditional data centres pose significant hurdles. 'Rentals for edge data centres are anticipated to be on the higher side compared to traditional data centres, as they cater primarily to retail customers, unlike traditional centres which serve enterprise and hyperscale clients," Reddy noted. 'The higher capital expenditure per MW for edge data centres is expected to be offset by these higher rentals." Swipe Left For Next Video View all ICRA also highlighted that established data centre players, as well as entities such as RailTel and telecom operators, are likely to lead India's edge data centre expansion over the next few years. As digital demand continues to rise across urban and rural India, edge data centres are set to play a critical role in ensuring faster, more efficient digital services, marking a new chapter in the country's technological advancement. Mohammad Haris Haris is Deputy News Editor (Business) at He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h... Read More Haris is Deputy News Editor (Business) at He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h... Read More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
19 hours ago
- Business
- Time of India
India's edge data centre capacity projected to triple to 200-210 MW by 2027
New Delhi, India's edge data centre is projected to expand significantly to 200-210 megawatt (MW) by 2027 from 60-70 MW in 2024, marking a three times increase driven by proliferation of emerging technologies, a report said on Thursday. The current edge data centre capacity as a percentage of total India's data centre capacity stands at around 5 per cent, and it is estimated to go up to 8 per cent by 2027, ICRA said in its latest report. Edge data centres are smaller, decentralised facilities located closer to end-users and devices and, unlike traditional data centres, which are typically large and centralised, they enable real-time data processing with minimal latency. "Edge data centres differ from traditional data centres in multiple parameters like size, location, scale, time taken to construct, capex cost per MW, distance from end user, etc," said Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA. In the Indian context, traditional data centres and edge data centres are complementary pillars of digital infrastructure, Reddy added. With the expanding cloud ecosystem in India, traditional data centres will continue to fuel mass-scale computing, artificial intelligence (AI), and cloud workloads, while edge data centres will facilitate real-time processing and localised services. Traditional and edge data centres are expected to operate in a hub-and-spoke model to enhance efficiencies across sectors such as healthcare, banking, agriculture, Defence, and manufacturing. Despite the promising outlook, some of the key challenges for edge data centres in India include security vulnerabilities due to remote deployments (majorly in tier 2 and tier 3 cities), the report stated. Rapid technological changes that risk obsolescence, a shortage of skilled professionals in remote areas, and interoperability issues with traditional data centres. According to the report, the US commands over 44 per cent of worldwide edge data centre capacity, followed by Europe, the Middle East and Africa region at 32 per cent and Asia Pacific (the APAC) region at 24 per cent.
Hans India
a day ago
- Business
- Hans India
India's edge data centre capacity projected to triple to 200-210 MW by 2027
New Delhi: India's edge data centre is projected to expand significantly to 200-210 megawatt (MW) by 2027 from 60-70 MW in 2024, marking a three times increase driven by proliferation of emerging technologies, a report said on Thursday. The current edge data centre capacity as a percentage of total India's data centre capacity stands at around 5 per cent, and it is estimated to go up to 8 per cent by 2027, ICRA said in its latest report. Edge data centres are smaller, decentralised facilities located closer to end-users and devices and, unlike traditional data centres, which are typically large and centralised, they enable real-time data processing with minimal latency. 'Edge data centres differ from traditional data centres in multiple parameters like size, location, scale, time taken to construct, capex cost per MW, distance from end user, etc," said Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA. In the Indian context, traditional data centres and edge data centres are complementary pillars of digital infrastructure, Reddy added. With the expanding cloud ecosystem in India, traditional data centres will continue to fuel mass-scale computing, artificial intelligence (AI), and cloud workloads, while edge data centres will facilitate real-time processing and localised services. Traditional and edge data centres are expected to operate in a hub-and-spoke model to enhance efficiencies across sectors such as healthcare, banking, agriculture, Defence, and manufacturing. Despite the promising outlook, some of the key challenges for edge data centres in India include security vulnerabilities due to remote deployments (majorly in tier 2 and tier 3 cities), the report stated. Rapid technological changes that risk obsolescence, a shortage of skilled professionals in remote areas, and interoperability issues with traditional data centres. According to the report, the US commands over 44 per cent of worldwide edge data centre capacity, followed by Europe, the Middle East and Africa region at 32 per cent and Asia Pacific (the APAC) region at 24 per cent.
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Business Standard
2 days ago
- Business
- Business Standard
ICRA downgrades NIIF backed Radiance Renewables' long term rating
Rating agency ICRA has downgraded NIIF-backed Radiance Renewables Private Ltd's (RRPL's) long-term rating from 'A' to 'A-' due to moderation in its credit profile and delays in capacity additions. The downgrade factors in the weakening of credit metrics following the use of additional mezzanine debt of Rs 525 crore in July 2025 to fund equity requirements for ongoing projects, and the slower-than-expected progress in capacity additions. The agency also revised the outlook on the ratings from 'stable' to 'negative', citing modest credit metrics. It affirmed the short-term rating at 'A2+'. RRPL, a renewable energy firm, is a 100 per cent subsidiary of Green Growth Equity Fund (GGEF), which counts the National Infrastructure and Investment Fund (NIIF) and the Government of the United Kingdom among its anchor investors. The company posted a loss of Rs 120.8 crore on operating income of Rs 557.5 crore in FY25. It had reported a loss of Rs 75.3 crore on operating income of Rs 409.1 crore in FY24. ICRA said in a statement that the company availed a mezzanine debt of Rs 525 crore in July 2025, of which Rs 185 crore has been used to repay an earlier mezzanine debt. The remaining amount will fund the equity requirements of upcoming projects in its subsidiaries. Delays in securing incremental equity funding have constrained progress on planned expansion. RRPL had an operational solar power capacity of 610 Megawatt Peak (MWp) as of June 2025, a modest rise from approximately 500 MWp in May 2024, due to delays in land acquisition and fund-raising. Additionally, the company has an under-construction capacity of around 250 MWp and a near-term pipeline of about 256 MWp. This will take the overall installed solar capacity to approximately 1,100 MWp over the next 12–15 months. RRPL aims to scale capacity further to 2,000 MWp by FY28. In this context, ICRA said the ability to raise equity to fund expansion and refinance the mezzanine debt, thereby improving debt coverage metrics, would remain a key rating sensitivity. The reliance on mezzanine debt over equity is expected to moderate the company's debt coverage indicators at a consolidated level. The Debt Service Coverage Ratio (DSCR) is projected to remain weak in the current financial year (FY26) and modest thereafter, the agency said. The liquidity position of RRPL (standalone) remains adequate, supported by the new mezzanine debt which enabled it to meet equity contributions for projects. The liquidity position is expected to stay adequate, given plans to raise additional equity in FY26 to fund upcoming projects comfortably, it added.
Economic Times
4 days ago
- Business
- Economic Times
June core output at 3-month high on steady govt capex
Synopsis India's core sector shows growth. Output reached a three-month high in June at 1.7%. Government spending on infrastructure supported this growth. Steel and cement production increased. Refinery products also saw gains. However, coal, natural gas, electricity, crude oil, and fertilizers declined. Experts predict further improvement in July. Industrial activity may be impacted. ANI Representative Image New Delhi: India's core sector output grew to a three-month high of 1.7% in June, driven by sustained government capital expenditure that supported infrastructure-related sectors, even as five of the eight core industries recorded contraction, official data released Monday showed. The growth was 1.2% in May and 5% in June 2024."Steady government capex, along with the reasonable growth in steel, cement and refinery products pulled up the infrastructure output to a three-month high," said Paras Jasrai, associate director at India Ratings and Research (Ind-Ra).The steel output surged to a seven-month high of 9.3% in June, while cement production increased by 9.2%, due to a favourable base effect. "The growth in volumes of these segments has been quite healthy in Q1FY26, which implies that the construction sector is poised to record a robust GVA (gross value added) growth in the quarter," said Aditi Nayar, chief economist at ICRA. Official GVA figures for the June quarter will be released in August. Output of refinery products grew to a five-month high of 3.4% strong performance of these three sectors helped prevent a contraction in core sector output, offsetting decline in other five industries - coal (6.8%), natural gas and electricity (2.8% each), and crude oil and fertilizers (1.2% each)."While an elevated base weighed upon coal output, excess rains in the latter half of June impacted electricity generation," explained added that the swift progression of the southwest monsoon across the country along with a high base effect were some of the average, core sector output averaged 1.3%, lower than 6.2% in the corresponding period last ahead, Ind-Ra projects core sector output to improve further to around 2% year-on-year in the eight core industries account for 40.27% weight in the Index of Industrial Production (IIP), economists expect the tepid growth in core sector output to impact industrial activity as output grew by 1.2% year-on-year in May from 2.6% in April, according to official data released last month. Estimates for June will be released on July anticipates IIP growth to remain around 1.5% in July, while ICRA expects 1.5-2.5%.
