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India’s AI Data Centre Boom: 50 Million Sq Ft Space and 45 TWh Power Needed by 2030, Says Deloitte
India will need 45-50 million sq ft of real estate and 40-45 TWH of power by 2030 to meet AI data centre demand. Addressing infrastructure, talent, and policy gaps is crucial.
India’s AI Data Centre Demand to Drive Real Estate and Power Needs by 2030
India is set to require an additional 45-50 million square feet of real estate and 40-45 Terawatt Hours (TWH) of incremental power by 2030 to support the growing demand for AI data centres, according to a recent Deloitte India report.
The report, titled "Attracting AI Data Centre Infrastructure Investment in India," highlights the country's advantages such as cost-effectiveness, a focus on renewable energy, and strategic location. However, it also points out that India’s rise as a global AI hub depends on addressing key gaps in infrastructure, talent, and policy.
Key Pillars for AI Ecosystem Development
Deloitte identifies six essential pillars for constructing a successful AI ecosystem:
- Real estate
- Power and utilities
- Connectivity
- Compute infrastructure
- Talent
- Policy framework
These areas require focused interventions to create a supportive environment for AI data centres.
Incentivising Specialised Infrastructure
The report recommends introducing a distinct category for data centres in the National Building Code and recognising them under the Essential Services Maintenance Act. Such measures would incentivise specialised infrastructure development.
Setting up dedicated data centre facilitation units can simplify and accelerate approval processes, encouraging faster deployment of data centres across the country.
Policy Changes to Strengthen AI Infrastructure
Deloitte stresses the importance of policy reforms including streamlined data localisation norms and the creation of dedicated data centre zones. Amending data access provisions under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 to better reflect operational realities of data centres is also urged.
Excluding data centres from surveillance provisions under the Telecommunication Act, 2023, and implementing safe harbour rules for data hosting providers could further boost investment.
The concept of data embassies is highlighted as a means to attract foreign investment and support the growth of India’s data centre capacity.
Infrastructure Challenges Ahead
Rapid expansion of data centres will place significant pressure on India’s power grid. Urgent investments are needed to expand generation capacity, upgrade infrastructure, and integrate renewable energy sources more effectively.
Despite progress, India still faces connectivity challenges such as limited fibre optic coverage in rural areas, inconsistent high-speed internet, and high latency. These issues currently limit the country's ability to fully capitalise on data centre development.
Opportunities for Real Estate and Construction Professionals
For those in real estate and construction, the AI data centre boom presents a clear opportunity. Developing specialised facilities that meet the unique needs of data centres—such as scalable power, cooling systems, and advanced networking infrastructure—will be in high demand.
Understanding the evolving policy landscape and collaborating with authorities to fast-track approvals will be essential to capture this emerging market.
Investing in these specialised projects can position developers and construction professionals at the forefront of India’s AI infrastructure growth.
For those interested in exploring AI-related skills and opportunities, resources like Complete AI Training’s latest courses offer practical insights into AI technologies shaping the future.