ST Telemedia Global Data Centres (STT GDC) will invest INR 26,000 crores ($3.2 billion) in India to expand its data center operations.

The operator said it will add 550MW of capacity to its current offering over the next five to six years, nearly tripling the company’s IT capacity.

STT GDC said the investment reflects the company’s confidence in the growth of India’s digital economy, which is experiencing a surge in data consumption, cloud computing, and AI applications.

Bruno Lopez, president, and group CEO at STT GDC, said: “As we celebrate STT GDC’s 10th anniversary this year, embarking on this ambitious expansion is a sign of our confidence in Digital India and the future of one of STT GDC’s strategic and fastest growing markets globally.

“Prime Minister Modi’s vision for Digital India has paved the way for opportunity; today the India digital economy’s growth rate of almost three times overall GDP growth is putting the country on pace to achieve a $1 trillion digital economy by 2027-2028.”

STT GDC’s India unit is majority-owned by STT GDC. Tata Communications holds a minority stake in the company.

The operator’s India portfolio currently consists of 28 data centers across 10 cities in India, with a capacity of more than 318MW. STT GDC said it currently holds around 28 percent of the market share by revenue in India.

The company broke ground on its third Chennai data center campus earlier this year. It is scheduled for completion in September 2025.

In April 2024, a report from DC Byte said India led growth in the APAC region’s data center market with many hyperscalers choosing to invest in the country.

Earlier this week, AWS announced plans to invest an additional $2 billion in data centers in Telegana, India.