India’s data centre market, valued at approximately $10 billion in 2025, is expected to more than double to $22 billion by 2030, according to a Vestian report
The global data centre market is expanding rapidly, with 40–50 GW of current installed capacity worldwide and projections exceeding 100 GW expected by 2030, driven largely by the rapid growth in cloud computing, AI and data-intensive technologies.
Strategic hub
India is emerging as a strategic hub within the Asia-Pacific region. The country’s accelerating digital economy, expanding internet user base, and increasing investments from hyperscale operators are positioning it as a key destination for data infrastructure development.
This growth can be attributed to rising internet and telecommunications subscribers, increasing enterprise cloud adoption, expanding AI and high-performance computing workloads, and shifting consumer preferences towards digital payments and OTT platforms.
The rollout of 5G infrastructure has pushed average monthly wireless data consumption beyond 25 GB per user, reflecting a sharp rise in data usage and reinforcing the need for scalable data centre infrastructure.
According to data from Vestian Research, India’s current operational capacity is 1.4–1.6 GW, with over 700 MW under construction. The country has 164 data centres and is expected to reach 4-5 GW by 2030.
Shrinivas Rao, FRICS, CEO, Vestian, said, “India’s data centre sector is rapidly transforming on the back of strong policy support and rising digital demand. Despite a limited share of global capacity, India has a huge upside potential to lead in Al infrastructure. With single-window clearances, 20-year tax exemptions, GST benefits, and incentives extending to 2047, India is strategically positioned to emerge as a global data centre and Al hub.”
Between 2020 and 2024, India’s data centre industry attracted approximately $13–15 billion in investments, with foreign institutional investors accounting for nearly 80 per cent of the total capital inflows.
Investment plan
The investment pipeline remains strong, with announced projects totalling $60–70 billion over the next five years, largely driven by hyperscale platforms and joint venture developments.
India also offers a competitive cost advantage, with data centre construction costs of $6–7 Mn/MW, significantly lower than those in mature APAC markets such as Singapore and Japan.
Mumbai remains the country’s largest data centre hub, driven by strong global connectivity and infrastructure advantages. Chennai also serves as a key global data gateway, with multiple submarine cable landings that enable high-capacity, low-latency connectivity. Meanwhile, Hyderabad, Bengaluru, and Pune are emerging as important secondary hubs owing to robust IT ecosystems, ample land availability, and competitive operating costs.
Focus areas
Data centre operators are increasingly exploring Tier-II cities to support distributed digital infrastructure. Cities such as Ahmedabad, Kochi, Jaipur, and Visakhapatnam are gaining traction due to competitive land availability, improving digital infrastructure, supportive State government policies, and growing enterprise demand.
Operational capacity in Tier-II markets is currently estimated at 60–80 MW and is expected to exceed 100 MW by the end of 2026.
India’s data centre market is expected to witness sustained expansion over the next decade. Installed capacity is projected to reach 1.7–2.0 GW by the end of 2026, backed by nearly $30 billion in investments.
Published on April 13, 2026