India's Installed Data Centre Capacity Set to Reach 6.5 GW by 2030

India's data centre industry is experiencing rapid growth, with installed capacity expected to rise from 1.5 GW in 2025 to 6.5 GW by 2030 as per the report published by Rubix Data Sciences, as per The Business Standard report.  

As of January 2026, the country had 271 data centres, with major cities like Mumbai, Hyderabad, Delhi NCR, Bengaluru, and Chennai hosting nearly 65% of these facilities. 

Drivers of Expansion 

The surge in data centre capacity is primarily driven by increased demand for cloud computing, AI workloads, and digital services such as 5G, e-commerce, UPI, and OTT platforms.  

India's cost advantage plays a significant role, with construction costs estimated to be 30-40% lower than in China and the US.  

Major commitments from companies like Amazon Web Services, Microsoft, and Google, amounting to around $67.5 billion, contribute to a total investment pipeline of approximately $90 billion. 

Resource Strain and Decarbonisation Efforts 

The expansion is expected to put pressure on water and power resources. Currently, data centres in India consume about 150 billion litres of water annually, a figure projected to rise to nearly 359 billion litres by 2030.  

Electricity demand is anticipated to increase from around 1 GW to 13.56 GW by 2031-32. The sector is working towards decarbonising operations to align with India's 2070 net-zero target. 

Read More: India Semiconductor Mission 2.0 Explained: Why India Is Cutting Chip Subsidies While Expanding Industry Support! 

Investment and Growth Potential 

Despite generating nearly 20% of the world's data, India accounts for only 3-4% of global data centre capacity. This indicates substantial growth potential.  

With continued investment, supportive government policies, and an expanding renewable energy base, India is positioned to become a leading hub for hyperscale and colocation data centre development. 

Conclusion 

India's data centre capacity is set to grow from 1.5 GW in 2025 to 6.5 GW by 2030, driven by cloud computing and AI. Investment commitments total $90 billion, while water consumption is expected to rise from 150 billion litres to 359 billion litres by 2030. 

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