New Delhi, January 9
India's data centre capacity additions more than doubled in 2025, reaching 387 MW IT as the country emerged as one of the world's fastest-growing markets for digital infrastructure. This figure represents a 103 per cent year-on-year increase from the 191 MW IT added in 2024, according to a report by global real estate consultancy Savills India. By 2030, India's total data centre capacity is projected to triple, reaching over 4 GW IT with a compound annual growth rate of 23 per cent.
Market demand also saw a steady rise, with data centre absorption growing 5 per cent annually to 427 MW IT in 2025 from 407 MW IT the previous year. Total operational stock reached 1.5 GW IT by the end of 2025, with 33 per cent of that capacity dedicated to hyperscalers. Facilities serving a mix of hyperscalers and enterprises accounted for 59 per cent of the stock, while enterprise-only stock stood at 8 per cent.
Mumbai and Chennai remained the primary drivers of demand, together accounting for 70 per cent of total absorption in 2025. "Mumbai maintained its lead, contributing 48% to total absorption in 2025, followed by Chennai at 22% and the Tier-II cities contributed 7% of the total absorption. On the supply side, Mumbai led the pack with 34% of its contribution to overall supply, followed by Delhi-NCR (20%) and Chennai at 19%," the release said.
"With data centre absorption estimated at ~430 MW in 2025, driven by both enterprise and hyperscale demand, India's digital infrastructure growth is gaining strong momentum. Rising cloud adoption by enterprises is accelerating demand from global hyperscalers and domestic cloud players, while emerging locations such as Visakhapatnam, backed by policy support and cost advantages are strengthening India's attractiveness as a data centre destination. Beyond major metros, the rollout of 5G and the growing use of mobile streaming and digital services are driving hyperscale demand across Tier 2 cities to meet local data and latency requirements," said Srihari Srinivasan, Director & Lead Data Centre Services, Savills India.
The outlook for 2026 suggests continued expansion, with capacity additions expected to exceed 600 MW IT and absorption projected to surpass 500 MW IT. Growth remains fuelled by cloud adoption and expanding SaaS and AI workloads, alongside the expansion of edge data centres in Tier-II and Tier-III cities.
"Kolkata is expected to lead with a 48% CAGR, owing to its strategic position as a gateway to Eastern and Northeastern India and the upcoming undersea cable landing station. Hyderabad (44%) and Ahmedabad (26%) are also witnessing strong momentum, backed by growth in IT, ITeS, and manufacturing sectors. Bengaluru, with a projected CAGR of 20%. Mumbai and Chennai, already the largest data center markets, continue to grow steadily at CAGR of 22% and 18% respectively," the release noted.
- ANI
Reader Comments
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.