New Delhi, Jan 8 (NationPress) India's data centre capacity witnessed a remarkable increase in 2025, soaring to 387 MW IT from 191 MW IT added in 2024. This substantial growth represents a year-on-year surge of 103 percent, according to a report released on Thursday.

Demand-wise, data centre absorption reached 427 MW IT in 2025, up from 407 MW IT in the prior year, reflecting a 5 percent annual rise.

Leading the absorption were Mumbai and Chennai, which together accounted for 70 percent of the total, driven by the presence of hyperscalers amid the increasing adoption of cloud services, AI workloads, the rollout of 5G, and a surge in IoT demand, as per a new report by Savills India.

The market is anticipated to grow significantly, projected to reach over 4 GW IT by 2030, with a compound annual growth rate (CAGR) of 23 percent.

The term MW IT capacity indicates the electrical power (in Megawatts) that a data centre facility can supply for its IT equipment.

Capacity additions soared by 103 percent year-on-year, bringing the total operational stock to 1,520 MW IT, a 34 percent increase, predominantly led by Mumbai with a 34 percent supply share, followed by Delhi-NCR at 20 percent and Chennai at 19 percent.

Hyperscale data centres are driving this growth, fueled by global hyperscalers, local cloud providers, and institutional investors, while enterprise colocation continues to generate demand alongside edge data centres located in Tier 2 and 3 cities, the report indicated.

Emerging markets such as Visakhapatnam, Kolkata (with a projected 48 percent CAGR), and Hyderabad (projected 44 percent CAGR) are gaining traction due to policy support, cost benefits, undersea cables, and the low-latency requirements posed by 5G and IoT.

"With data centre absorption projected at 430 MW IT in 2025, influenced by both enterprise and hyperscale demand, India's digital infrastructure growth is accelerating. The rising cloud adoption among enterprises is driving demand from global hyperscalers and local cloud providers, while emerging locations like Visakhapatnam, backed by policy benefits and cost advantages, enhance India's appeal as a data centre hub," stated Srihari Srinivasan, Director and Lead Data Centre Services at Savills India.

Beyond major metropolitan areas, the rollout of 5G and the increasing consumption of mobile streaming and digital services are intensifying hyperscale demand in Tier 2 cities to satisfy local data and latency needs. These advancements further solidify India's status as a rapidly emerging global centre for scalable and long-term data centre investments, added Srinivasan.