India's Data Centre Sector Poised to Attract $20-25 Billion in 6 Years
India's data centre capacity stands at 1,263 MW as of April 2025 and is expected to cross 4,500 MW by 2030, according to Colliers. The sector has already seen investments of nearly $15 billion since 2020 and is likely to attract $20-25 billion more over the next six years.
Data CentresIndiaColliersInvestmentDigitalizationReal EstateMay 28, 2025
In its latest report, Colliers India noted that India's data centre capacity currently stands at 1,263 MW as of April 2025, distributed across seven major cities. The capacity is projected to surpass 4,500 MW by 2030. The existing real estate footprint of data centres is 15.9 million sq ft, which is expected to expand to about 55 million sq ft by 2030.
The scale-up in the Indian data centre industry has been accompanied by substantial investments over the past 5-6 years. The industry has already seen investments totaling $14.7 billion since the beginning of 2020. These investments have primarily focused on land acquisition, project construction, and development.
In the next 5-6 years, with the massive adoption of cloud computation and AI in India, data centres are likely to attract investments to the tune of $20-25 billion. Data pertains to co-location data centres in the top seven cities: Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune. The data centre capacity represents the total IT load capacity, including both occupied and unoccupied space.
India is becoming a global data centre hotspot, fueled by rapid digitalization, data localization norms, and strong government support. As this growth trajectory continues, India's data centre capacity is expected to cross 4,500 MW in the next 5-6 years, translating into a real estate footprint of 55 million sq ft, according to Jatin Shah, Chief Operating Officer, Colliers India.
India's strategic advantages, such as the availability of land parcels, power supply, and a skilled talent pool, 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.
Frequently Asked Questions
What is the current capacity of data centres in India?
As of April 2025, India's data centre capacity stands at 1,263 MW across seven major cities.
How much investment has the data centre industry in India seen since 2020?
The data centre industry in India has seen investments of nearly $15 billion since 2020.
What is the projected capacity of data centres in India by 2030?
The capacity is projected to surpass 4,500 MW by 2030.
What factors are driving the growth of data centres in India?
The growth is driven by rapid digitalization, data localization norms, strong government support, and the increasing need for lower latency and real-time analysis.
Which cities are included in the data centre capacity figures?
The data pertains to co-location data centres in the top seven cities: Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune.
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