India’s data centre industry is set to experience exponential growth, with its capacity expected to surpass 4,500 MW by 2030. This surge is underpinned by a massive $20 to $25 billion investment, expected to fuel the expansion of digital infrastructure across the country. The rise in capacity is being driven by the growing demand for digital services, including cloud computing, artificial intelligence, and the Internet of Things, as well as the increasing adoption of data-heavy technologies.
The investment is creating opportunities in various regions, particularly in major cities like Mumbai and Chennai, which together account for a significant share of the country’s data centre capacity. Mumbai leads with 41%, followed by Chennai at 23%, and the Delhi National Capital Region (NCR) at 14%. The decentralisation of data centres to Tier II and Tier III cities is also part of the strategy, as businesses look to meet regional demands for data services.
This expansion also translates into major real estate developments. By 2030, approximately 55 million square feet of real estate will be dedicated to the data centre industry, contributing to India’s infrastructure and economic growth. The increase in capacity is not only critical to supporting the country’s digital ambitions but is also poised to drive urban development and economic activity in the process.
India’s data centre market is also benefiting from favourable government policies, which are designed to foster investment in digital infrastructure. As the country continues to enhance its digital ecosystem, the data centre industry will play a pivotal role in shaping the future of India’s economy.
