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India's Data Centre Capacity Quadruples to 1500 MW, Fueling Digital Growth

India's data centre capacity has experienced explosive growth, increasing from 375 MW in 2020 to over 1500 MW by 2025, according to the Ministry of Electronics & IT. Mumbai is the country's largest hub with 790 MW of operational capacity, followed by Chennai, Bengaluru, Hyderabad, and Delhi-NCR. The government's supportive policies, including a proposed tax holiday for eligible foreign cloud providers until 2047, aim to anchor high-value digital infrastructure within India. This expansion strengthens India's digital backbone and positions it competitively in the global race for data-intensive services and AI compute.

Key Points: India's Data Centre Capacity Soars to Over 1500 MW by 2025

  • Capacity quadrupled since 2020
  • Mumbai leads with 790 MW operational capacity
  • Tax holiday proposed for foreign cloud providers until 2047
  • New submarine cable systems being commissioned
2 min read

Data centre capacity in the country has grown from 375 MW in 2020 to more than 1500 MW: IT Ministry

India's data centre capacity surged from 375 MW in 2020 to over 1500 MW by 2025, with Mumbai leading and new tax incentives boosting global investment.

Data centre capacity in the country has grown from 375 MW in 2020 to more than 1500 MW: IT Ministry
"Data centre capacity in the country has grown from 375 Megawatt in 2020 to more than 1500 MW till 2025 - IT Ministry"

New Delhi, March 18

Data centre capacity in the country has grown from 375 Megawatt in 2020 to more than 1500 MW till 2025, according to a statement released by the Ministry of Electronics & IT.

In line with Prime Minister Narendra Modi's vision, the Government is democratising the development and usage of technology.

The focus is on facilitating the establishment of data centres in the country, which will help strengthen digital infrastructure and improve delivery of digital services across various sectors.

Data centres are spread across the country, and as per industry sources, major capacity is in cities like Mumbai, Chennai, Bengaluru, Hyderabad, and Delhi-NCR/Noida.

In Mumbai, the operational capacity is 790 MW, which is the largest in the country.

Chennai is ranked second in terms of operational capacity of data centres with 305 MW.

Bengaluru, Hyderabad and Delhi-NCR/Noida have operational capacities of 182 MW, 152 MW, and 76 MW, respectively.

Four submarine cable systems are currently under being commissioned at various Cable Landing Stations (CLS).

Further, three submarine cable systems are under planning by various Telecom Service Providers (TSP) for which applications have been submitted to DoT.

The policies of the Government of India are aimed at ensuring a safe, trusted and accountable cyberspace with sufficient data storage capacity within the country.

Recently, the Union Budget 2026-27 also included major policy initiatives to strengthen India's position as a global hub for digital infrastructure.

A tax holiday till 2047 was proposed for eligible foreign cloud providers using India-based data centres for global operations in the budget.

Globally, data centres have emerged as a major driver of investment and economic activity.

According to the United Nations Conference on Trade and Development (UNCTAD), data centres accounted for more than one-fifth of global greenfield project values in 2025, with announced investments exceeding USD 270 billion. Rapid growth in AI compute demand and data-intensive digital services is intensifying international competition to attract such infrastructure.

In this context, India's long-term tax framework aims to provide investment certainty, anchor high-value digital infrastructure within the country, and strengthen India's role in global digital value chains in line with the vision of Viksit Bharat by 2047.

- ANI

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Reader Comments

P
Priya S
Great news, but I hope the growth is sustainable. Data centres consume massive amounts of power and water for cooling. Are there enough green initiatives tied to this expansion? We need to be a leader in green tech, not just capacity.
R
Rohit P
Tax holiday till 2047 for foreign cloud providers is a masterstroke! This will attract big players like AWS, Google, Microsoft to set up more servers here. Local data storage also means better data sovereignty and faster internet for us. Jai Hind!
S
Sarah B
Working in the tech sector, I can see the direct impact. Latency has improved for many of our services hosted within India. This infrastructure is critical for the AI boom. Hope they also focus on spreading capacity to Tier-2 cities for balanced growth.
V
Vikram M
Good step for 'Viksit Bharat'. But what about the power grid? 1500 MW is a lot of demand. We need parallel investment in renewable energy sources to power these centres without burdening the existing infrastructure. Otherwise, frequent power cuts will hurt reliability.
K
Kavya N
As a student, this is exciting! It means more opportunities in cloud computing, cybersecurity, and data management right here at home. The submarine cable projects are also crucial for better international connectivity. Future looks digital! 💻✨

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