India's Data Centre Market Set to Surpass 4,500 MW by 2030
India’s data centre capacity is expected to cross 4,500 MW by 2030, translating into a real estate footprint of around 55 million square feet in the next 5-6 years, according to a report by Colliers.
Data CentreReal EstateDigital ServicesArtificial IntelligenceInternet Of ThingsReal EstateMay 28, 2025
This is likely to translate into a real estate footprint of around 55 million square feet in the next 5-6 years, according to the report by Colliers. The DC capacity has grown over 4 times in the last 6-7 years and stands at 1,263 MW (as of April). This growth is driven by the surge in demand for digital and cloud services, increasing adoption of artificial intelligence (AI) and the Internet of Things (IoT), and higher internet penetration, supported by favorable government policies.
At the city level, Mumbai continued to account for the majority of the DC capacity with a 41 per cent share, followed by Chennai and Delhi-NCR at 23 per cent and 14 per cent, respectively. This rapid expansion in capacity has resulted in over 3X times 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 square feet, the report mentioned.
“India is becoming a global DC hotspot, fuelled by rapid digitalisation, data localisation norms, and strong government support,” said Jatin Shah, Chief Operating Officer, Colliers India. Undoubtedly, India’s strategic advantages such as the availability of land parcels, power supply for usage, and availability of skilled talent reinforce its position as one of the preferred destinations for data centres in the APAC region.
Interestingly, the market is expanding beyond large-scale colocation facilities and hyperscalers to edge data centres driven by the increasing need for lower latency, real-time analysis, enhanced app performance, and business agility, Shah added. In terms of geographical spread, 44 per cent of the new supply since 2020 was concentrated in Mumbai. This was followed by Chennai and Delhi-NCR, which together accounted for 42 per cent of the capacity addition since 2020. In the next 5-6 years, the majority of the primary DC markets are set to witness a significant influx of new supply.
Hyderabad, specifically, is likely to see significant traction and emerge as a major hub, in addition to cities such as Mumbai, Chennai, and Delhi-NCR.
Frequently Asked Questions
What is the expected capacity of India's data centre market by 2030?
India’s data centre market capacity across the top seven cities is expected to cross 4,500 MW by 2030.
How much real estate footprint is expected to be added in the next 5-6 years?
The data centre market is likely to translate into a real estate footprint of around 55 million square feet in the next 5-6 years.
Which city has the highest share of data centre capacity in India?
Mumbai has the highest share of data centre capacity with 41 per cent, followed by Chennai and Delhi-NCR at 23 per cent and 14 per cent, respectively.
What factors are driving the growth of India's data centre market?
The growth is driven by the surge in demand for digital and cloud services, increasing adoption of artificial intelligence (AI) and the Internet of Things (IoT), and higher internet penetration, supported by favorable government policies.
Which cities are expected to see significant traction in the data centre market in the next 5-6 years?
Hyderabad, Mumbai, Chennai, and Delhi-NCR are expected to see significant traction and emerge as major hubs in the data centre market.
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