Larsen & Toubro (L&T) has unveiled plans to invest Rs 36 billionin establishing three new data centres in Bengaluru, Panvel, and Mahape. The expansion will increase L&T’s data centre capacity from 32MW to 150MW by 2027.

India’s Booming Data Centre Market L&T already operates data centres in Mumbai and Chennai. This latest move aligns with India’s surging digitalisation and AI-driven growth, attracting substantial investments from domestic and global players.

Cost & Competition in the Sector With data centre setup costs ranging between Rs 350-400 million per MW, controlling capital expenditure is crucial. The 5G rollout and the emergence of providers like Starlink are expected to lower costs by enabling data centres in Tier-2 and Tier-3 cities.

Investment Trends in India’s Data Centre Sector The Indian market has seen major investments, including:

AWS’s Rs 600 billion investment in Telangana Blackstone’s Rs 45 billion, 150MW data centre project According to ICRA estimates, India’s data centre capacity is set for massive expansion by 2027, requiring significant investments in FY25 and FY26.