Chennai data centre capacity to rise seven-fold to 2.3 GW by 2032

CHENNAI: Chennai's data centre capacity is expected to increase nearly seven-fold from the present 300 MW to 2,300 MW (2.3 GW) over the next six years, with investments and revenue projected to cross USD 10 billion by 2032, industry experts said.

Prasath Sivakaminathan, Convenor of the Chennai Data Centre Summit 2026, said the sector's revenue was expected to grow from the current USD 2 billion to over USD 10 billion. He was speaking at a press conference on the sidelines of the summit organised by the Indian Society of Heating, Refrigerating and Air Conditioning Engineers (ISHRAE), Chennai Chapter, in Chennai on Saturday.

He said Chennai and Mumbai had significant growth potential as India's data centre capacity was projected to increase seven-fold to 12 GW. Chennai already has established data centres in Ambattur and Siruseri, while new facilities are expected in Kancheepuram and along the east coast, including Thoothukudi, Thanjavur and Cuddalore.

He added that the expansion would generate revenue and employment opportunities. However, Tamil Nadu needed to strengthen its infrastructure and logistics to retain its position in the country's data centre sector. He cautioned that Hyderabad could overtake Tamil Nadu amid growing investments in Andhra Pradesh, particularly Visakhapatnam.

ISHRAE Chennai Chapter president R Krishnan said the summit brought together industry leaders, technology providers, operators and infrastructure specialists to discuss the evolving AI-driven data centre ecosystem.

The event attracted over 230 delegates from across the country. Its technical sessions covered AI server evolution, high-density computing, power infrastructure, advanced cooling technologies and sustainable operations.

Prof R Saravanan, president of ISHRAE, highlighted the need for renewable energy integration, liquid cooling technologies, efficient water management and sustainable refrigerants to support the sector's growth.