Data centres consume a substantial amount of energy because they run thousands of servers continuously to store, process, and transmit digital information. This includes everything from websites and video streaming to cloud computing and artificial intelligence.
The server is a powerful computer designed to process and store data, run applications, and handle network services. The Energy is mainly used to power the servers and to keep them cool, as a lot of heat is generated by the servers.
India’s data centre market value is expected to reach $11.60 billion by 2032. Major players in the Indian data centre market include CTRLS Datacentres Ltd., Arshiya Limited, NTT Global Data Centres, Sify Technologies, Cisco Systems India, Microsoft Corporation, and Reliance Datacentre.
Government initiatives and policies that help to promote data centre development, by creating a supportive regulatory environment that attracts investments and boosts infrastructure growth are Data Centre Incentivization Scheme (DCIS), which offers fiscal and non-fiscal incentives for using domestically produced equipment, and the planned establishment of Data Centre Economic Zones (DCEZs), which will provide additional benefits to data centres operating within these zones.
UBS Picks for Data Centres Growth in India
According to a recent report by UBS, data centres use a lot of electricity and could put a heavy load on the power supply, especially in countries like India and Japan. In India, the situation is getting serious because the number of new data centres being built is more than double the current capacity.
This rapid growth could reduce the reserve margin, which is the extra power available beyond what’s needed during peak times. If this margin falls below 30 percent, it means there might not be enough backup electricity to handle sudden spikes in demand, leading to possible power shortages or instability in the grid.
For Investment, UBS has picked 3 stocks, with one being a data centre operator and the other two from the data centre supply chain. Bharti Airtel is the preferred pick in the regional data centre operator, and the other two picks are Tata Power and CG Power, which come under the power supply chain segment.
The global data centre market is projected to generate revenue of US$452.53 billion in 2025, with network infrastructure leading the segment at an estimated US$253.21 billion. The Revenue is expected to grow steadily, with a compound annual growth rate (CAGR) of 8.37% from 2025 to 2029, reaching a total volume of US$624.07 billion by 2029. Among all countries, the United States is anticipated to generate the highest revenue, contributing US$137.46 billion in 2025, highlighting its dominant position in the global data centre industry.
Written By Abhishek Das
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