India's Data Centre Market To Reach $22 Billion By 2030
India's data centre market will more than double to $22 billion by 2030 from $10 billion in 2025, according to real estate consultant Vestian. The expansion reflects surging demand for cloud computing, artificial intelligence, and data infrastructure across the region.
Installed capacity will reach 1.7-2.0 GW by the end of 2026, backed by nearly $30 billion in investments. That figure will climb to 4-5 GW by 2030.
What's Driving Growth
Internet and telecom subscriber growth, rising enterprise cloud adoption, and expanding AI workloads are the primary drivers. The rollout of 5G networks has pushed average monthly wireless data consumption beyond 25 GB per user, creating immediate demand for storage and processing capacity.
India's cost advantage matters. Construction costs run $6-7 million per MW compared to $10 million-plus in mature markets like Singapore and Japan.
Investment Momentum
The sector attracted $13-15 billion between 2020 and 2024, with foreign institutional investors supplying nearly 80% of capital. Announced investments for the next five years total $60-70 billion, primarily from hyperscalers and joint venture platforms.
Geography: Mumbai Dominates, Tier-II Cities Emerge
Mumbai holds nearly half of India's operational capacity due to connectivity advantages. Chennai ranks second with 18% of capacity, supported by submarine cable landings.
Secondary hubs are consolidating in Hyderabad, Bengaluru, and Pune, where IT ecosystems and lower costs attract operators. Tier-II cities including Ahmedabad, Kochi, Jaipur, and Visakhapatnam are gaining ground as developers pursue lower land costs and improving infrastructure.
Operational capacity in Tier-II markets currently stands at 60-80 MW and is expected to exceed 100 MW by end of 2026.
Current Market Snapshot
- Operational capacity: 1.4-1.6 GW across 164 data centres
- Under construction: 700+ MW
- Planned capacity: 1-1.2 GW
- 2030 projection: 4-5 GW
Shrinivas Rao, CEO of Vestian, said India has "huge upside potential to lead in AI infrastructure," citing policy support including single-window clearances, long-term tax incentives, and GST benefits.
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