India’s data centre capacity is rapidly expanding and is projected to surpass 4,500 megawatts (MW) by 2030. This growth is driven by investments totalling ₹2.13 lakh crore and increasing demand for cloud services, Artificial Intelligence (AI) workloads, and edge computing. Key hubs like Mumbai, Chennai, and Hyderabad are leading this transformation, positioning India as a major player in the global data centre market.
India’s data centre (DC) market is witnessing a significant transformation, fuelled by rapid expansion in hyperscale data centres not only in major metropolitan areas but also across Tier II and III cities. The nation’s DC capacity is forecast to surpass 4,500 megawatts (MW) by 2030, signalling robust growth driven by surging demand from cloud services, Artificial Intelligence (AI) workloads, and edge computing.
Currently, Mumbai and Chennai are the dominant players in India’s data centre market, together accounting for nearly two-thirds of the country’s total capacity. Mumbai holds 41% of this capacity, while Chennai contributes 23%, with the Delhi National Capital Region (NCR) making up 14%. These cities have become pivotal hubs in supporting the increasing digital infrastructure requirements across the country.
Over the past 6 to 7 years, the real estate footprint dedicated to data centres in seven major Indian cities has tripled. According to the Colliers report titled The Digital Backbone: Data Centre Growth Prospects in India, the data centre sector will expand to nearly 55 million square feet by 2030. This considerable growth aligns with the rapid technological advancements and the rise in digital adoption nationwide.
Between 2020 and April 2025, India has added 859 MW of new data centre supply. Mumbai led this growth, contributing 44% of the new capacity, while Chennai and Delhi NCR combined for 42%. Looking forward, from 2025 to 2030, the primary data centre markets are projected to witness fresh capacity additions between 3,000 MW and 3,700 MW. Notably, Mumbai and Hyderabad are expected to add 1,000–1,200 MW each, with Hyderabad emerging as a key data centre hub.
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Investment activity in India’s data centre market has been substantial. Since 2020, commitments have reached ₹1,25,000 crore ($14.63 billion). Projections suggest an additional ₹1,70,840 crore to ₹2,13,550 crore ($20–25 billion) in investments by 2030. Several major projects underpin this growth, including AdaniConneX’s 100 MW campus in Chennai, Yotta Infrastructure’s ₹39,000 crore ($4.56 billion) hyperscale developments, and CapitaLand Investment’s ₹1,940 crore ($227 million) facility in Navi Mumbai.
By 2030, data centres with capacities exceeding 50 MW are expected to constitute nearly two-thirds of the total inventory. This trend reflects the sector’s shift towards AI-ready, high-density infrastructure capable of handling complex workloads. Additionally, sustainability is gaining importance; green-certified data centres currently account for 25% of the market and are projected to increase to 30–40% by 2030. This shift underscores a growing commitment to renewable energy integration and environmentally friendly practices within the industry.
India’s data centre industry is set for unprecedented expansion, supported by massive investments and strategic development in key metro and emerging locations. This growth aligns with the country’s increasing digitalisation and technological innovation landscape.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 30, 2025, 1:36 PM IST
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