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India's Data Centre Boom: 2-3 GW Capacity & $22B Market by 2030

India's data centre sector is poised for major expansion, with a projected addition of 2-3 GW of capacity over the next five to seven years. The market, valued at about $10 billion in 2025, is expected to grow to $22 billion by 2030, fueled by nearly $30 billion in cumulative investments. Mumbai remains the dominant hub, while cities like Chennai, Delhi NCR, Hyderabad, Pune, and Bengaluru are emerging as key secondary markets. This growth is driven by rapid AI adoption, hyperscale cloud expansion, and sustained enterprise digital transformation, positioning India as a key digital infrastructure hub in Asia-Pacific.

Key Points: India's Data Centre Capacity to Surge 2-3 GW, Market Hits $22B

  • 2-3 GW new capacity in 5-7 years
  • Market to hit $22 billion by 2030
  • $30B cumulative investments by 2030
  • Mumbai dominates with half of capacity
  • Driven by AI adoption and digital transformation
2 min read

India to add 2-3 GW data centre capacity in 5-7 years, market seen at USD 22 billion by 2030: Report

India's data centre market to reach $22B by 2030, adding 2-3 GW capacity in 5-7 years, driven by AI and digital transformation.

"India's data centre market reached approximately USD 10 Bn in 2025 and is projected to reach USD 22 Bn by 2030 - Vestian Report"

New Delhi, April 15

India's data centre sector is set for strong expansion, with the country expected to add 2-3 GW of capacity over the next 5-7 years, according to a report by Vestian, a global commercial real estate firm.

The report highlighted that this surge is supported by increasing AI adoption, expanding hyperscale cloud deployments, and sustained enterprise digital transformation and rising demand for digital infrastructure.

It stated, "India's data centre market reached approximately USD 10 Bn in 2025 and is projected to reach USD 22 Bn by 2030".

The report also mentioned that with over 700+ MW currently under construction and an additional 1-1.2 GW in the pipeline, the sector is witnessing a sustained development cycle. Installed capacity is projected to exceed 1.7-2.0 GW by end-2026 and further expand to 4-5 GW by 2030, backed by nearly USD 30 billion in cumulative investments.

Mumbai continues to dominate the market, accounting for nearly half of the total operational capacity, supported by strong global connectivity and reliable power supply. Chennai and Delhi NCR serve as key hubs for enterprise, BFSI, and government workloads, while cities such as Hyderabad, Pune, and Bengaluru are emerging as important secondary markets.

The report noted that the sector has attracted robust investments, with approximately USD 13-15 billion deployed between 2020 and 2024, with around 80 per cent participation from foreign institutional investors.

Looking ahead, a strong investment pipeline of nearly USD 60-70 billion has been announced over the next five years, with joint venture platforms expected to drive hyperscale campus development.

The growth is being driven by increasing adoption of artificial intelligence, expansion of hyperscale cloud infrastructure, and ongoing digital transformation across enterprises. Tight vacancy levels in mature markets such as Mumbai and Chennai are expected to push expansion into other Tier I and emerging Tier II cities.

The report added that government support in improving regulatory approvals, water availability, and project execution timelines, along with increasing renewable energy integration, will further support long-term capacity expansion.

So the report outlined that the sustained capital inflows, rapid AI adoption, and continued digital transformation are expected to drive multi-year growth, positioning India as a key digital infrastructure and AI compute hub in the Asia-Pacific region.

- ANI

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Reader Comments

P
Priya S
Great growth, but 80% foreign investment? We need more Indian companies and funds to have a major stake in this strategic sector. Also, hope the expansion to Tier II cities includes proper planning for water and power, not just rushing to build.
R
Rohit P
Mumbai dominating makes sense with its undersea cables. But the report says Chennai and NCR are key for BFSI and govt. As someone in Pune's tech park, glad to see us listed as a secondary market. Time to upgrade my skills in cloud and AI!
S
Sarah B
Working for a global firm with ops in Bengaluru, this data centre growth is critical. Latency issues improve, data sovereignty is easier to manage. The scale mentioned (4-5 GW by 2030) is massive. Hope the renewable energy integration keeps pace.
V
Vikram M
$22 billion market by 2030... achha hai! But all this needs power and water. Hope the government's focus on faster approvals is matched by building sustainable infrastructure. Can't have data centres causing water stress in cities like Chennai.
K
Karthik V
As a startup founder, cheaper and more local cloud compute is a game-changer. AI adoption driving this is the key point. Jio, Airtel, Tata, Adani – our big Indian groups need to lead this hyperscale charge alongside the foreign investors.

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