India's data centre sector poised for growth, but land, power access issues remain: Report

INDIA, 23 JULY 2026 —

India's data centre sector is poised for significant growth, driven by increasing adoption of artificial intelligence, cloud computing, and enterprise digitalisation, according to a report. The sector's expansion is expected to be substantial, with demand fueled by the rising need for data storage and processing. However, challenges related to land and power access are likely to hinder the growth, Details not yet available on the specific measures being taken to address these issues.

The growth of India's data centre sector may have implications for the Malaysian market, particularly in terms of competition for foreign investment. Malaysia has been actively promoting its own data centre industry, with several major players already operating in the country. The expansion of India's data centre sector could potentially divert investment away from Malaysia, although it may also create opportunities for collaboration and partnership between the two countries. The impact on the Malaysian market will depend on various factors, including government policies and the ability of local players to compete with their Indian counterparts.

According to the report, the demand for data centre services in India is driven by the increasing adoption of AI, cloud computing, and enterprise digitalisation. The report was published on July 22, 2026, and highlights the potential for significant growth in the sector. However, it also notes that challenges related to land and power access need to be addressed in order for the sector to reach its full potential. Details not yet available on the specific findings of the report, but it is clear that the Indian government and industry players will need to work together to overcome the existing challenges.

The outlook for India's data centre sector remains positive, with the report suggesting that the sector is poised for significant expansion in the coming years. The growth of the sector is likely to have implications for the broader technology industry, both in India and beyond. As the demand for data centre services continues to rise, companies and governments will need to work together to address the challenges related to land and power access, and to ensure that the sector is able to reach its full potential. The Malaysian market will be watching the developments in India's data centre sector closely, as it seeks to promote its own industry and attract foreign investment.

Related: India