India's Data Centre Market Set to Attract $20-25 Billion in Investments by 2030
The rapid expansion in India's data centre (DC) market, driven by the adoption of AI, IoT, and cloud services, is set to attract significant investments over the next 5-6 years. With a projected capacity of 4,500 MW by 2030, the industry is poised for substantial growth.
Data CentreInvestmentsAiCloud ServicesReal EstateReal EstateMay 28, 2025
Also, in the next five to six years, the massive adoption of cloud computation and AI in the country is likely to attract investments to the tune of $20-25 billion. The Colliers’ report, 'The digital backbone: Data centre growth prospects in India,' highlights that Mumbai and Chennai cumulatively hold close to two-thirds of the DC capacity.
Mumbai continues to account for the majority of the DC capacity with a 41% share, followed by Chennai and Delhi NCR at 23% and 14%, respectively. This rapid expansion in capacity has resulted in an over three-fold increase in real estate footprint over the last 6-7 years, across the top seven DC markets of the country, taking it to 16 million sq ft as of April 2025, the report added.
On the supply front, India has witnessed 859 MW of capacity addition across the top seven primary DC markets since the beginning of 2020. In terms of geographical spread, 44% of the new supply since 2020 was concentrated in Mumbai. This was followed by Chennai and Delhi NCR, which together accounted for 42% of the capacity addition from 2020.
In the next 5-6 years, the majority of the primary DC markets are set to witness a significant influx of new supply. These Tier I markets are likely to witness 3,000-3,700 MW of DC capacity additions during 2025-2030, a four-fold rise compared to the new supply during 2020-2025, the report further added. It stated that though Mumbai will continue to dominate the overall DC market, relatively smaller growth markets such as Hyderabad, Bengaluru, and Pune are likely to see multifold growth in inventory levels. Hyderabad is likely to see significant traction and emerge as a major hub, in addition to cities such as Mumbai, Chennai, and Delhi NCR.
“With a DC capacity of about 1,263 MW across the top seven markets, India’s data centre industry has witnessed significant scaling up in the last few years. India is becoming a global DC hotspot, fueled by rapid digitalization, data localization norms, and strong government support. As this growth trajectory continues, India’s DC capacity is likely to cross 4,500 MW in the next 5-6 years, translating into a real estate footprint of 55 million sq ft,” said Jatin Shah, Chief Operating Officer, Colliers India.
The rise in the proportion of larger-sized DCs (>20 MW) — from 42% during 2020 to 56% as of April 2025 — indicates heightened traction in large hyperscale data centres, especially in recent years, the report added.
“In the coming years, the demand for high density rack configurations and advanced computing infrastructure will further rise. DC investments of about $20-25 billion are likely to materialize over the course of the next 5-6 years,” said Vimal Nadar, National Director & Head of Research, Colliers India.
Frequently Asked Questions
What is the projected capacity of India's data centre market by 2030?
India's data centre market is projected to cross 4,500 MW by 2030.
How much investment is expected in the data centre market over the next 5-6 years?
The data centre market is expected to attract investments to the tune of $20-25 billion over the next 5-6 years.
Which cities hold the majority of the data centre capacity in India?
Mumbai and Chennai cumulatively hold close to two-thirds of the data centre capacity.
What has been the increase in real estate footprint for data centres over the last 6-7 years?
The real estate footprint for data centres has increased over three-fold, reaching 16 million sq ft as of April 2025.
What factors are driving the growth of the data centre market in India?
The growth is driven by the increasing adoption of AI, IoT, and cloud services, as well as rapid digitalization, data localization norms, and strong government support.
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