India's data centre capacity is set to more than double to 2-2.3 GW by 2026-27, led by increasing digitalisation as organisations increase their investments in cloud storage, Crisil Ratings said in a report on Monday.
Further, the report stated that rising penetration of Generative Artificial Intelligence (GenAI) will drive the demand over the medium-term.
To support the strong demand, the incremental capital expenditure would be supported by a higher proportion of debt funding, which will result in a moderate increase in debt levels, it said.
Data centres cater to the computing and storage infrastructure demand as enterprises rapidly shifting their businesses to digital platforms, including cloud, a trend that has accelerated post Covid-19 pandemic, it said.
The other major factor is that increased accessibility of high-speed data has led to a surge in internet usage, including social media, over-the-top (OTT) platforms and digital payments, it added.
Notably, mobile data traffic