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India's Data Centre Capacity Doubles in 2025, Set to Triple by 2030

India's data centre capacity additions more than doubled in 2025, reaching 387 MW IT for a 103% year-on-year growth. Demand absorption rose to 427 MW IT, led by Mumbai and Chennai which together accounted for 70% of the total. The market is projected to triple to over 4 GW IT by 2030, growing at a 23% CAGR. Growth is fuelled by hyperscalers, rising cloud adoption, AI workloads, and the 5G rollout, with emerging locations like Visakhapatnam and Kolkata gaining momentum.

Key Points: India's Data Centre Capacity Doubles, Growth Soars 103%

  • Capacity doubled to 387 MW IT in 2025
  • Absorption led by Mumbai and Chennai
  • Market to triple to over 4 GW IT by 2030
  • Growth driven by AI, cloud, and 5G
  • Tier 2 and 3 cities gaining momentum
2 min read

India's data centre capacity more than doubled in 2025

India's data centre capacity surged 103% in 2025 to 387 MW IT. Mumbai and Chennai lead demand. Market projected to triple by 2030.

"India's digital infrastructure growth is gaining strong momentum. - Srihari Srinivasan, Savills India"

New Delhi, Jan 8

India's data centre capacity additions more than doubled in 2025, reaching 387 MW IT -- from 191 MW IT added in 2024 -- thus marking a robust year-on-year growth of 103 per cent, a report showed on Thursday.

On the demand side, data centre absorption rose to 427 MW IT in 2025 from 407 MW IT in the previous year, registering a 5 per cent annual increase.

Mumbai and Chennai led absorption, together accounting for 70 per cent of the total at 427 MW IT, driven by hyperscalers amid rising cloud adoption, AI workloads, 5G rollout, and IoT demand, according to Savills India's new report.

The market is projected to triple to over 4 GW IT by 2030, growing at a CAGR of 23 per cent.

"MW IT capacity" refers to the electrical power (Megawatts) a data centre facility can provide for its IT equipment.

Capacity additions surged 103 per cent year-on-year to 387 MW IT from 191 MW IT in 2024, pushing operational stock to 1,520 MW IT - a 34 per cent increase - led by Mumbai (34 per cent supply share), Delhi-NCR (20 per cent), and Chennai (19 per cent).

Hyperscale data centres dominate growth fuelled by global hyperscalers, domestic cloud players, and institutional investors, while enterprise colocation sustains demand alongside edge data centres in Tier 2 and 3 cities, said the report.

Emerging markets like Visakhapatnam, Kolkata (48 per cent CAGR projected), and Hyderabad (44 per cent CAGR) gain momentum from policy support, cost advantages, undersea cables, and low-latency needs for 5G/IoT.

"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," said Srihari Srinivasan, Director and Lead Data Centre Services, Savills India.

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. These developments reinforce India's position as a fast-emerging global hub for scalable and long-term data centre investments, Srinivasan added.

- IANS

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Reader Comments

P
Priya S
Impressive numbers, but I hope this infrastructure boom also translates into more local tech jobs and skill development, not just foreign investment. We need to build our own talent pool to manage these centres.
R
Rohit P
Good to see Chennai and Mumbai leading. But the power consumption of these data centres is huge. Are we ensuring this growth is powered by renewable energy? Sustainability must be a core part of this expansion.
S
Sarah B
Working in tech, this is very encouraging. The projection to 4 GW by 2030 is ambitious but achievable with the current AI and cloud demand. The focus on low-latency for 5G/IoT in emerging cities like Vizag is smart planning.
V
Vikram M
Hope this means better and cheaper cloud services for Indian startups and SMEs. The cost advantage mentioned for places like Visakhapatnam should eventually benefit the end consumer. 🤞
K
Karthik V
While the growth is stellar, the concentration in Mumbai, Delhi, Chennai (73% share) is still very high. Need more policy push to develop true parity across other regions to avoid digital infrastructure bottlenecks.

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