India's Data Centre Market Set to Surpass 4,500 MW by 2030: A Transformative Shift

India's data centre (DC) market is experiencing rapid growth, with DC capacity expected to exceed 4,500 megawatts (MW) by 2030. This expansion is driven by increasing demand from cloud services, AI workloads, and edge computing.

Data CentreHyperscaleCloud ServicesAiSustainabilityReal EstateMay 29, 2025

India's Data Centre Market Set to Surpass 4,500 MW by 2030: A Transformative Shift
Real Estate:India’s data centre (DC) market is undergoing a transformative shift, marked by the expansion of hyperscale data centres across both metro hubs and Tier II/III cities. Mumbai and Chennai jointly dominate, holding nearly two-thirds of the nation’s DC capacity, with Mumbai at 41%, Chennai at 23%, and the Delhi NCR region at 14%. Over the past six to seven years, the DC real estate footprint across the seven major cities has tripled; according to the Colliers report “The Digital Backbone: Data Centre Growth Prospects in India,” DC capacity is expected to surpass 4,500 megawatts (MW) by 2030, driven by rising demand from cloud services, Artificial Intelligence (AI) workloads, and edge computing. This will expand the sector’s footprint to nearly 55 million sq ft.

Between 2020 and April 2025, India added 859 MW of new DC supply, with Mumbai contributing 44%, followed by Chennai and Delhi NCR at 42% combined. From 2025 to 2030, the primary DC markets are projected to see 3,000–3,700 MW in fresh capacity, with Mumbai and Hyderabad each adding 1,000–1,200 MW, positioning Hyderabad as an emerging hub. Investments have been robust, with Rs. 1,25,000 crore (US$ 14.63 billion) already committed since 2020 and an additional Rs. 1,70,840–2,13,550 lakh crore (US$ 20–25 billion) expected by 2030.

Major projects include AdaniConneX’s 100 MW campus in Chennai, Yotta Infrastructure’s Rs. 39,000 crore (US$ 4.56 billion) hyperscale developments, and CapitaLand Investment’s Rs. 1,940 crore (US$ 227 million) Navi Mumbai facility. By 2030, DCs above 50 MW will account for nearly two-thirds of total inventory, reflecting the shift to AI-ready, high-density infrastructure. Green-certified data centers, currently at 25%, are projected to rise to 30–40%, highlighting the sector’s commitment to sustainability and renewable energy integration.

This growth is not just a testament to the increasing demand for digital services but also a reflection of the strategic investments being made by both domestic and international players. The Indian government’s push for digital transformation and the adoption of advanced technologies such as AI and IoT is further fueling this growth. As the demand for data storage and processing continues to rise, the data centre sector is poised to play a crucial role in India’s economic development and technological advancement.

Frequently Asked Questions

What are the primary cities driving India's data centre growth?

The primary cities driving India's data centre growth are Mumbai, Chennai, and the Delhi NCR region. Mumbai and Chennai together hold nearly two-thirds of the nation’s DC capacity.

What is the projected DC capacity in India by 2030?

By 2030, India's data centre capacity is expected to surpass 4,500 megawatts (MW).

What factors are driving the growth of data centres in India?

The growth of data centres in India is driven by increasing demand from cloud services, AI workloads, and edge computing.

How much investment has been committed to India's data centre sector since 2020?

Since 2020, Rs. 1,25,000 crore (US$ 14.63 billion) has already been committed to India's data centre sector.

What is the projected increase in green-certified data centres by 2030?

By 2030, the percentage of green-certified data centres in India is projected to rise to 30–40%.

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