India’s edge data center capacity is expected to triple from 60–70 MW in 2024 to around 200–210 MW by 2027, according to ICRA.
Contextual Growth
A picture of the global edge market Around 10% of the world’s data center capacity, or roughly 50 GW, was made up of edge facilities as of December 2024. With 44% of the edge area, the US leads the world, followed by EMEA (32%), and APAC (24%).
Share inside India: In 2024, edge data centers will account for around 5% of all data center capacity in India; however, if captive-use capacity by a dominating operator is taken out of the equation, this number might fall to about 1%. This percentage is anticipated to increase to 8% by 2027.
Why Edge Is Getting More Popular
Demand for emerging technologies: Low-latency, real-time processing is necessary for applications like 5G, IoT, AR/VR, and generative AI; these capabilities are best supported by edge facilities situated closer to users.
Traditional data centers are being supplemented by edge facilities and traditional mega-centers in India’s digital infrastructure, which are increasingly being implemented in a hub-and-spoke format. For localized, latency-sensitive workloads, edge nodes serve as the anchor for centralized cloud processing.
Obstacles to Come
Risks to security and remote deployment: Edge sites, which are frequently found in Tier-II/III cities, are vulnerable to cybersecurity threats, rapidly aging technology, a shortage of experienced labor, and problems integrating with major hubs.
Cost and pricing pressures: Since edge deployments generally serve retail or regional users rather than hyperscalers, higher rental rates balance out the greater capital expenditures per MW. According to projections, capital costs will be offset by increasing rentals.
Important market participants: A large portion of India’s edge data center expansion is anticipated to be led by well-established companies like RailTel and telecom providers.
The bottom line
As demand rises from AI, 5G, IoT, and cloud ecosystems, ICRA predicts that India’s edge data center infrastructure will dramatically scale, tripling capacity in only three years. India is preparing to construct a hybrid digital infrastructure that combines sizable centralized centers with flexible edge nodes to more effectively service industries including healthcare, manufacturing, banking, agriculture, and defense, even if security, interoperability, and cost are still major obstacles.
