India’s Real Estate Revolution: Plug-and-Play Data Centre Cities
India’s data centre market is evolving, with developers moving from raw land sales to fully integrated, plug-and-play campuses. This shift is driven by the rapid growth of AI, cloud computing, and digital services, making India a key player in the global tech landscape.
Data CentreReal EstatePlugandplayHyperscalersAiReal Estate NewsNov 21, 2025
Developers say that land for data centres is no longer a straightforward acquisition—operators now demand highly engineered sites with pre-installed power, fibre, cooling, and sustainability infrastructure. Hence, developers are offering specialised land parcels, ready-built shells, and high-capacity infrastructure, significantly reducing commissioning timelines across major hubs such as Navi Mumbai, Chennai, Hyderabad, Bengaluru, and Noida.
From raw land to plug-and-play campuses, the data centre market is undergoing a significant shift in how land is acquired, developed, and delivered. Traditionally, data centre operators purchased industrial land and built facilities from the ground up. However, with deployment timelines tightening and demand rising from global cloud companies, developers are increasingly offering powered-shell and plug-and-play campuses.
“Data centre clients today want speed, scalability, and power assurance. The era of buying plain land and building everything from scratch is over,” said a senior executive at a data centre development firm. “We are delivering ready-to-build and ready-to-operate campuses where power, fibre, and compliance systems are already in place,” he added.
Amit Sarin, Managing Director of Anant Raj Limited, noted that India’s data centre landscape is moving towards plug-and-play data centre parks. These parks allow cloud and hyperscale operators to deploy their IT infrastructure rapidly. “Instead of the traditional land-led approach, these integrated parks offer built-to-spec shells, co-location-ready environments, high-voltage power infrastructure, and streamlined regulatory facilitation. This significantly reduces commissioning timelines in key hubs,” Sarin explained. Such facilities compress deployment time, making them highly attractive for hyperscalers.
Data centre land is typically industrial use land and is secured through four models: direct purchase, long-term leasing, government-allotted industrial plots, and joint development with private landowners. Developers say the approach also depends on location, cost, and available infrastructure. Hyperscale data centres typically require 10–50 acres, colocation facilities range from 2–5 acres, while edge centres are more compact at 0.5–2 acres.
“Large hyperscale operators prefer direct ownership for 50–100 MW expansions, while colocation players often opt for long-term leases in strategic clusters,” said another real estate developer in the data centre domain. “But irrespective of the model, the underlying demand is the same—high-quality, power-rich, fibre-dense land,” he added.
Experts noted that states such as Tamil Nadu, Maharashtra, Uttar Pradesh, and Karnataka offer subsidised industrial land and incentives like tariff rebates and capital subsidies. “State governments are catalysing this momentum through incentives such as capital subsidies and single-window clearances. Such initiatives strengthen the ecosystem essential for accelerated digital growth, data localisation, and long-term infrastructure resilience,” Sarin said.
Developers are now delivering campuses that include dual or triple 50–100 MW power feeds, building shells with cooling and electrical backbones, carrier-neutral fibre networks, substation-ready infrastructure, and sustainability systems such as recycled water plants and heat-recovery systems. Sarin stated that a well-managed, ready co-location facility where utilities, security, and operational frameworks are already in place provides operators with a complete, scalable solution. “This integrated model ensures efficiency, reliability, and faster deployment,” he said.
Surajit Chatterjee, Managing Director and Head of Data Centre, India, at CapitaLand Investment, said that India’s data centre landscape is undergoing a “decisive transformation” from standalone developments to integrated, campus-scale infrastructure. This shift has enabled developers to create true plug-and-play data centre campuses. Chatterjee noted that such plug-and-play data centre campuses offer fully planned land parcels, pre-approved master plans, dedicated substations or guaranteed power allocation, high-speed fibre connectivity, and built-to-suit shells that can go live in record timelines.
“This integrated model is compressing the traditional 28–30-month cycle from land acquisition to operations. This is one of the key reasons hyperscalers are now willing to commit to 10–15 year leases or renewals as soon as a campus is announced,” he said.
Navi Mumbai, Chennai, Noida, and Hyderabad are emerging as the core markets due to their strong power availability, fibre connectivity, and regulatory support. Tier-II cities are also becoming preferred locations for edge data centres. According to developers, AI and GPU-driven workloads are accelerating requirements for large, modular campuses that can be expanded in phases.
Chatterjee said that India’s installed capacity has already expanded from 350 MW pre-COVID to 1.2 GW today and is on track to reach nearly 3 GW by 2028, powered by hyperscaler growth and increasing enterprise workload densities. As demand intensifies, experts predict that plug-and-play data centre parks will become the industry standard.
Frequently Asked Questions
What is the main difference between traditional land sales and plug-and-play data centre campuses?
Traditional land sales involve purchasing raw land and building data centre facilities from scratch. Plug-and-play data centre campuses, on the other hand, offer pre-installed power, fibre, cooling, and sustainability infrastructure, significantly reducing commissioning timelines.
Which cities in India are emerging as core markets for data centres?
Navi Mumbai, Chennai, Noida, and Hyderabad are emerging as the core markets for data centres due to their strong power availability, fibre connectivity, and regulatory support. Tier-II cities are also becoming preferred locations for edge data centres.
What are the key features of plug-and-play data centre parks?
Plug-and-play data centre parks offer fully planned land parcels, pre-approved master plans, dedicated substations or guaranteed power allocation, high-speed fibre connectivity, and built-to-suit shells that can go live in record timelines.
How are state governments supporting the growth of data centres in India?
State governments are catalysing the growth of data centres through incentives such as capital subsidies, single-window clearances, and subsidised industrial land. These initiatives strengthen the ecosystem essential for accelerated digital growth and data localisation.
What is the projected growth of India's data centre capacity by 2028?
India’s installed data centre capacity is projected to reach nearly 3 GW by 2028, powered by hyperscaler growth and increasing enterprise workload densities. This represents a significant expansion from the pre-COVID capacity of 350 MW to the current 1.2 GW.
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