Will India’s Data Centre Capacity Exceed 4,500 MW by 2030 with $20-25 Billion Investments?
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Synopsis
India's data centre market is set to witness a remarkable transformation, with a projected capacity of over 4,500 MW by 2030. This growth, fueled by significant investments and technological advancements, positions India as a global leader in the data centre domain. Discover the factors driving this expansion and the cities leading the charge.
Key Takeaways
- Projected data centre capacity: Over 4,500 MW by 2030.
- Investment influx: $20-25 billion expected over 5-6 years.
- Real estate expansion: Anticipated footprint of 55 million square feet.
- Leading cities: Mumbai, Chennai, and Delhi-NCR dominate the market.
- Growth drivers: Digital demand, AI, IoT, and government support.
Bengaluru, May 28 (NationPress) India's data centre (DC) market across the leading seven cities is projected to surpass 4,500 MW by 2030, with anticipated investments ranging from $20-25 billion over the next 5-6 years, according to a report released on Wednesday.
This growth is expected to result in a real estate footprint of approximately 55 million square feet within that timeframe, based on findings from Colliers.
The DC capacity has quadrupled in the past 6-7 years, reaching 1,263 MW as of April. This significant increase is attributed to the rising demand for digital and cloud services, the growing implementation of artificial intelligence (AI) and the Internet of Things (IoT), along with enhanced internet accessibility, all bolstered by supportive government policies.
At the city level, Mumbai leads the DC capacity with a commanding 41% share, followed by Chennai and Delhi-NCR at 23% and 14% respectively.
This swift capacity expansion has led to a more than threefold increase in real estate footprint in the top seven DC markets over the last 6-7 years, bringing it to 16 million square feet, as indicated in the report.
According to Jatin Shah, Chief Operating Officer of Colliers India, “India is transforming into a global DC hotspot, driven by rapid digitalisation, data localisation regulations, and robust government backing.”
India's strategic advantages, including the availability of land, reliable power supply, and a skilled workforce, solidify its status as a prime location for data centres in the APAC region.
“Interestingly, the market is evolving beyond large-scale colocation facilities and hyperscalers to encompass edge data centres, driven by the increasing demand for lower latency, real-time analysis, improved application performance, and enhanced business agility,” Shah added.
Geographically, 44% of the new supply since 2020 has been focused in Mumbai, with Chennai and Delhi-NCR contributing 42% of the capacity additions since then. Over the next 5-6 years, key DC markets are expected to experience a remarkable influx of new supply.
Specifically, Hyderabad is anticipated to gain substantial traction and become a significant hub, alongside cities like Mumbai, Chennai, and Delhi-NCR.
Point of View
The rapid growth of India's data centre capacity highlights the country's technological advancements and strategic positioning in the global market. As the demand for digital services rises, the government's supportive policies and the availability of resources make India an attractive destination for investments in this sector.
NationPress
08/06/2025
Frequently Asked Questions
What is the expected data centre capacity in India by 2030?
India's data centre capacity is expected to exceed 4,500 MW by 2030.
How much investment is projected for India's data centres?
Investments in India's data centres are projected to be between $20-25 billion over the next 5-6 years.
Which city holds the majority of India's data centre capacity?
Mumbai accounts for 41% of India's data centre capacity.
What factors are driving the growth of data centres in India?
The growth is driven by increasing demand for digital services, AI, IoT, and supportive government policies.
What is the significance of Hyderabad in the data centre market?
Hyderabad is emerging as a significant hub in India's data centre landscape, alongside Mumbai, Chennai, and Delhi-NCR.
