India's data centre capacity likely to quadruple to 6.5 GW by 2030: Report
New Delhi, July 22
India's installed data centre capacity has grown from about 375 megawatts in 2020 to around 1.5 gigawatts in 2025 and is projected to reach 6.5 GW by 2030, more than four times current levels, a report said on Wednesday.
The report from Rubix Data Sciences said capacity additions accelerated sharply, with India adding 387 megawatts of IT capacity in 2025, marking a 103 per cent year‑on‑year increase from the 191 megawatts added in 2024.
India ranked seventh globally by number of data centres in June 2025. As of January 2026, 271 facilities in Mumbai, Hyderabad, Delhi NCR, Bengaluru, and Chennai, together accounted for nearly 65 per cent of the total, the report added.
The sector's investment pipeline currently stands at around $90 billion, about six times the $13-15 billion invested between 2020 and 2024, driven by commitments from Amazon Web Services, Microsoft and Google.
The government has projected that AI‑driven digital infrastructure, including data centres, could catalyse up to $200 billion in investment in the years ahead.
Water and power availability are emerging as critical constraints, with data centre electricity demand projected to rise from around 1 GW today to 13.56 GW by 2031-32.
States including Gujarat and Maharashtra have introduced dedicated policies to extend data centre growth beyond traditional metro hubs.
The data centre industry is becoming a key indicator of India's digital and economic momentum, with industry trends having implications across technology, real estate, power and energy, finance, policy, and sustainability, the report noted.
Data centres emerged as the second‑largest recipient of institutional investments in India's real estate sector, accounting for 40 per cent of Q2 2026 investments, another report said.
The sector's growing share reflects increasing investor interest in digital infrastructure assets, supported by rising demand driven by rapid AI adoption, cloud expansion and data localisation requirements.
— IANS
Reader Comments
$90 billion investment pipeline is massive! But why are all these facilities concentrated in just five cities? Why not develop data centres in tier-2 cities like Indore, Lucknow, or Patna? That would create jobs and reduce the load on metros. The government should incentivise companies to set up in smaller towns too. Just my two paise. 🤔
Impressive growth trajectory for India's data infrastructure. As an expat living in Bangalore, I've seen the digital transformation first-hand. The 103% YoY increase in capacity addition is remarkable. However, the 13.56 GW power demand projection by 2031-32 is staggering — we need massive renewable energy capacity alongside this. India has the potential to become a global data hub if these constraints are addressed smartly.
Data localisation requirements are a big reason for this growth. After the RBI rules on payments data and upcoming DPDP Act, companies have to store our data within India. That's good for national security but these data centres also need to comply with strict cybersecurity standards. One breach and millions of Indians' personal data could be compromised. Hope the regulators are keeping pace. 🛡️
Interesting report but I'm skeptical about the $200 billion AI infrastructure projection. These figures often get inflated to attract investment. And who's paying for the electricity? Ultimately, it's the consumers through higher tariffs. Also, 40% of real estate investments going to data centres — that's concerning when we have a housing crisis in major cities. Need more balanced development.
Proud to see India becoming a global data hub
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