India's RMZ to ramp up data center capacity with $35 billion push, exec says
India's RMZ plans to expand its data center capacity from 250 megawatts to 2–3 gigawatts over five years with a $35 billion investment, targeting over 1 gigawatt soon through three projects and aiming to acquire land for 2 more gigawatts by year-end. The Bengaluru-based firm also eyes AI facilities and related sectors like GPUs and power infrastructure as cloud demand surges in India’s hotly contested digital market. RMZ, which built its current capacity via a joint venture with Colt Data Centre Services, expects to sign clients and scale up mid-2024.
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RMZ’s $35 bn plan is ambitious, but sustained growth hinges on grid stability: India’s transmission losses (≈4.6 % in FY23) and coal-dependent baseload could throttle hyper-scale builds unless they secure 24×7 renewable PPAs or captive plants.
RMZ’s $35 bn push from 250 MW to 2–3 GW in five years is ambitious, but execution risk looms: grid reliability in Karnataka and Tamil Nadu—home to most of the targeted land—frequently dips during peak summer months, which could delay commissioning of AI-grade facilities that demand 24x7 power.
RMZ’s $35 bn expansion signals India’s data-centre race is scaling up fast, but the 20× capacity jump assumes uninterrupted power sourcing, land clearances and hyperscaler demand—all three are non-trivial in India’s patchwork regulatory terrain.