New Delhi, April 13 (NationPress) The data centre industry in India, valued at about $10 billion in 2025, is projected to surge and exceed $22 billion by 2030. This growth highlights the sector's robust development and increasing confidence from investors, as highlighted in a report released on Monday.

According to Vestian's recent findings, India is establishing itself as a pivotal data centre hub in the Asia-Pacific region.

The data centre sector is anticipated to experience continuous growth over the next decade, fueled by digital transformation across various industries.

It is estimated that the installed capacity will reach between 1.7–2.0 GW by the end of 2026, underpinned by nearly $30 billion in investments. This figure is expected to increase further to 4–5 GW by 2030, as per the report.

The rapid evolution of India's digital economy, coupled with a growing internet user base and rising investments from hyperscale operators, is positioning the country as a prime location for data infrastructure development.

“The transformation of India's data centre sector is being driven by strong policy support and escalating digital demand. Even with a relatively small share of global capacity, India possesses significant potential to excel in AI infrastructure,” stated Shrinivas Rao, FRICS, CEO of Vestian.

India is strategically poised to become a global hub for data centres and AI, thanks to initiatives such as single-window clearances, 20-year tax breaks, GST benefits, and incentives lasting until 2047.

Between 2020 and 2024, the sector attracted around $13–15 billion in investments, with foreign institutional investors making up nearly 80% of total capital inflows.

The investment landscape remains promising, with announced projects expected to total between $60–70 billion in the next five years, primarily driven by hyperscale platforms and joint ventures.

India also enjoys a competitive edge in terms of costs, with data centre construction costs ranging from $6–7 million per MW, significantly lower than those in more developed APAC markets such as Singapore and Japan. This affordability enhances its appeal for substantial investments.

The report indicates that data centre infrastructure in India is currently concentrated in several key metropolitan areas.

Mumbai continues to be the largest data centre hub in the country, bolstered by its strong global connectivity and inherent infrastructure benefits. Meanwhile, Chennai acts as a critical global data gateway, featuring multiple submarine cable landings that facilitate high-capacity, low-latency connectivity.

Additionally, Hyderabad, Bengaluru, and Pune are emerging as vital secondary hubs due to their thriving IT ecosystems, available land, and competitive operational costs.

Other cities like Ahmedabad, Kochi, Jaipur, and Visakhapatnam are also gaining momentum, thanks to favorable land availability, enhancing digital infrastructure, supportive state policies, and increasing enterprise demand.

Operational capacity in tier 2 markets is currently estimated at 60–80 MW and is projected to surpass 100 MW by the end of 2026, according to the report.