India's data centre pipeline likely to create 4.33 lakh jobs
New Delhi, Aug 3
India's proposed data centre pipeline of nearly 9,030 MW could generate nearly 4.33 lakh ecosystem jobs and translate into an estimated 195 million square foot of residential space demand by 2030, a report said on Monday.
The report from Square Yards said India currently produces nearly 20 per cent of the world's digital data but accounts for only 4 per cent of global data centre capacity, leaving substantial room for infrastructure expansion.
"With artificial intelligence, cloud computing, and enterprise digitisation accelerating investments, India's installed data centre capacity is expected to grow significantly, bringing with it a new wave of infrastructure-led real estate development," the firm said.
The report added that data centres attract power infrastructure, fibre connectivity, logistics and commercial services that gradually transform surrounding regions into thriving urban ecosystems.
The report revealed that their long-term impact extends well beyond technology, acting as catalysts for housing demand, infrastructure investment and urban expansion across emerging growth corridors.
The report highlighted that the strongest residential impact will emerge in a 5-15 kilometre "Golden Ring" surrounding major facilities, where infrastructure upgrades, mixed-use developments, residential townships, retail centers and civic amenities are expected to flourish.
As these supporting ecosystems mature, they create sustained housing demand driven by ancillary employment and economic activity rather than direct workforce concentration.
"For decades, India's real estate growth has been shaped by highways, industrial corridors, airports and IT parks. Data centers represent the next evolution of that story," said Vivek Agarwal, Co-Founder and Chief Technology Officer, Square Yards.
"Investments in power, fiber connectivity and logistics create confidence for businesses, developers and institutions, eventually driving residential and commercial growth around these emerging digital corridors. We believe data centers will increasingly serve as infrastructure anchors that redefine how cities expand in the coming years," he added.
Maharashtra is projected to be the major beneficiary generating over 54 million sq ft of residential demand, followed by Karnataka with nearly 28 million sq ft, Andhra Pradesh with over 23 million sq ft, Uttar Pradesh with approximately 22.7 million sq ft, Telangana with 21.6 million sq ft and Tamil Nadu with 19.4 million sq ft.
— IANS
Reader Comments
Interesting that Maharashtra leads the residential demand projection. With Mumbai's sky-high real estate prices, I wonder where exactly these 54 million sq ft will come from. Navi Mumbai and Pune suburbs maybe? 🏗️
This is the 'Digital India' dream becoming reality. But we seriously need to address the power supply issue. Data centres consume massive electricity - are our state grids ready for this? Otherwise all these jobs will be built on unstable infrastructure.
The "Golden Ring" concept is fascinating! 5-15 km around data centres becoming new urban hubs - this could actually decongest our metros. Wonder if the planning authorities are already zoning for this or will it be haphazard development as usual?
Good analysis but let's not get carried away. These are projections, not guarantees. We've seen many such reports in the past - remember the SEZ boom? Let's see actual investments and execution on ground before celebrating.
As someone working in tech, this is exciting! But we need to ensure these jobs go beyond just the metro cities. The report mentions Andhra Pradesh and UP getting significant demand - hope the development spreads to tier-2 and tier-3 cities too. Inclusive growth is key! 🇮🇳
Having worked in data centre development in the US, India's growth here is impressive. The key will be environmental sustainability - water cooling, e-waste management, and renewable energy integration. Hope Square Yards and others are factoring in these costs.
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