Top 6 Fast-Growing Data Centre Hotspots in India for 2025
India’s data center sector is emerging as a crucial component of the country’s digital economy. With the nation striving to become a global leader in AI, cloud computing, and IoT, the data center industry is expected to attract significant investments over the next few years. Currently, India’s data center capacity is around 1263MW across the top 7 cities, and it is projected to exceed 4500MW within the next 4-5 years. This growth is likely to attract investments of approximately USD 20-25 billion in the next 5-6 years. The sector is drawing in global data center companies, Indian billionaires, and even luxury real estate developers. Here are the top 6 cities emerging as data center hotspots in 2025:
1. Mumbai & Navi Mumbai
Mumbai and Navi Mumbai form the third-largest data center market in Asia, holding 44% of the market share with a total capacity of 500–570 MW. Major data center companies in this region include Sify Technologies Limited, Yotta, STT Telemedia, CtrlS, ESDS Software Solution Limited, CapitaLand, and AdaniConneX Venture.
2. Chennai
Chennai holds the second-highest data center capacity, with a market share of 21-23% and an existing capacity of 200-201 MW. Key players in the Chennai data center industry include Sify Technologies Limited, STT Telemedia, Reliance Industries, NTT Data, and Nxtra Data Limited.
3. Delhi-NCR
The National Capital Region (NCR), encompassing Noida and Gurgaon, is a significant data center hub in North India. It covers a market size of 14% and has a total existing capacity of 111 MW. Major players in this region include Yotta, NTT Data, STT Telemedia, Nxtra (by Airtel), and AdaniConneX.
4. Bengaluru
Bengaluru, known for its robust IT infrastructure, has a significant data center presence. It holds a market share of 7-8% with an existing capacity of 78 MW. Key data center companies in Bengaluru include ESDS, Sungard, Sify, Whitefield Nxtra Data, CapitaLand, Evoque, STT, and NTT.
5. Hyderabad
Hyderabad, a major IT hub, has a 6% market share in the data center industry with an existing capacity of 48-50 MW. Major data center providers in Hyderabad include Microsoft, Amazon Web Services (AWS), and ST Telemedia Global Data Centres (STT GDC).
6. Pune
Pune, another significant IT center, has a market share of 5% with an existing capacity of 90-100 MW. Key players in the Pune data center market include Nxtra, STT, Web Werks, and Microsoft Azure.
These locations are prime hubs where 60% of data centers in India are concentrated in Navi Mumbai, Noida, Gurgaon, Bangalore, and Hyderabad. The compound annual growth rate (CAGR) of the data center industry in India has been 25% over the past few years. Major global tech companies like Amazon Web Services, Microsoft, and Google are collectively investing over $2 billion in expanding their data center footprints in India, contributing to the rapid expansion of the industry. The data localization policies alone are projected to drive the construction of over 100 new data centers by 2025.
Future of Data Center Projections in India (2025-2030)
- Global market revenues are expected to reach over $627-$690 billion by 2030, supported by significant investments in next-generation infrastructure. - The compound annual growth rate (CAGR) is expected to be 8.75% to 11.8% between 2025-2030. - The AI data center market is projected to reach $933.76 billion by 2030 with a CAGR of 31.6%. - Capacity is projected to increase from 82 GW in 2025 to 219 GW by 2030. - AI workloads could drive about 70% of total data center capacity demand by 2030.
Conclusion
India is becoming a global data center hotspot due to its massive data demand, which is outpacing its limited capacity. The country is creating vast growth potential fueled by AI, 5G, and digital services. The Digital Personal Data Protection Act of 2023 regulates domestic data storage, building hyperscaler data centers within the country. This regulation is expected to create a significant gap and opportunity for expansion in the data center industry.
