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India's Data Centers Primed for 5X Growth, Driven by AI and Localization Mandates
13 Nov
Summary
- India's data center capacity to rise fivefold to 8GW by 2030
- $30 billion in capex required to meet surging demand
- AI workloads to account for 35% of data center capacity by 2027

India's data center industry is poised for explosive growth over the next few years. As of 2025-11-13, the country's total data center capacity stands at 1.7GW, but this is expected to rise fivefold to 8GW by 2030. This surge in capacity is being driven by several factors, including the rapid adoption of Artificial Intelligence (AI), surging data consumption, cloud adoption, and strict data localization mandates imposed by the government.
The rise of large language models (LLMs) and generative AI is creating a significant new stream of demand for data center services. According to a report by Kotak Mutual Fund, AI workloads are expected to account for 35% of India's data center capacity by 2027, up from 15% currently. This shift is driven by the fact that AI models require significantly more computing power, with their needs being three to five times higher than traditional workloads.



