India's Data Centers to Double by 2030

India's data centre market is on the cusp of significant expansion, projected to more than double from approximately $10 billion in 2025 to $22 billion by 2030. This growth aligns with a worldwide increase in data infrastructure demand, spurred by cloud computing, artificial intelligence, and other data-intensive technologies.

The nation is solidifying its position as a crucial data infrastructure hub within the Asia-Pacific region. Factors contributing to this include a rapidly growing digital economy, increased internet penetration, and substantial interest from hyperscale operators. Policy initiatives like single-window clearances and tax incentives are further bolstering this trend.

Between 2020 and 2024, the sector attracted $13-15 billion in investments, with foreign investors dominating. Projections indicate continued momentum, with $60-70 billion in announced investments anticipated over the next five years, primarily from hyperscalers and joint ventures. India's competitive construction costs, around $6-7 million per MW, enhance its global appeal.

Mumbai currently holds nearly half of India's operational data centre capacity, benefiting from superior connectivity and infrastructure. Chennai also serves as a key data gateway. Emerging hubs like Hyderabad, Bengaluru, and Pune are growing due to their robust IT ecosystems and cost advantages. Developers are also exploring Tier-II cities like Ahmedabad and Jaipur.

By the close of 2026, India's installed data centre capacity is expected to reach 1.7-2.0 GW, supported by nearly $30 billion in investments. This figure is forecast to climb to 4-5 GW by 2030, driven by increased AI adoption and cloud infrastructure expansion.