India's Data Centre Sector Poised to Attract $20-25 Billion in 6 Years

India's data centre industry has witnessed significant investments of nearly $15 billion since 2020 and is poised to attract an additional $20-25 billion over the next six years, according to real estate consultant Colliers. This growth is driven by the rising demand for cloud computation and artificial intelligence (AI) in the country.

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.