India’s data centre market is projected to more than double to $22 billion by 2030, driven by rising demand for cloud computing, artificial intelligence (AI), and data-intensive digital services, according to local media reports citing a report by real estate consultancy Vestian.
The report indicates that the market, currently valued at around $10 billion in 2025, is entering a phase of accelerated growth as enterprises expand digital operations and AI workloads place increasing pressure on infrastructure capacity.
Investment activity reflects this momentum. The sector attracted an estimated $13–15 billion between 2020 and 2024, with a significant share of capital coming from foreign investors. Looking ahead, $60–70 billion in investments have been announced over the next five years, largely driven by hyperscalers and joint venture-led developments, according to the Vestian report cited in local media.
Capacity expansion is also expected to scale rapidly. India’s installed data centre capacity is projected to reach around 1.7–2.0 GW by 2026, before increasing further to approximately 4–5 GW by 2030, as operators build out infrastructure to support high-density, AI-driven workloads.
The growth is underpinned by structural demand drivers, including the rapid expansion of internet users and telecom subscriptions, increased enterprise adoption of cloud platforms, and the continued rise of digital services such as streaming platforms and digital payments. The rollout of 5G networks is also expected to accelerate data consumption and infrastructure requirements.
Cost competitiveness remains a key advantage. Data centre construction costs in India are estimated at $6–7 million per MW, lower than in several mature Asia-Pacific markets. This, combined with government incentives and policy support, continues to attract both domestic and international investment.
Geographically, Mumbai remains the country’s primary data centre hub, while Chennai is emerging as a key connectivity gateway. Other cities, including Hyderabad, Bengaluru, Pune, and several Tier-II locations, are also gaining traction as the market expands beyond traditional clusters.
The findings highlight India’s growing role in the global data centre landscape, as demand for AI-ready infrastructure and cloud capacity continues to reshape digital investment priorities.
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