India’s Data Centre Market Set to Hit $22 Billion by 2030 Amid AI and Cloud Boom
India’s data centre industry is poised for significant growth, with the market projected to more than double from around $10 billion in 2025 to $22 billion by 2030, according to a report by Vestian. This surge is being fueled by rising cloud adoption, the rapid expansion of artificial intelligence (AI) workloads, and an explosion in digital consumption. The sector has already attracted $13–15 billion in investments between 2020 and 2024, with foreign institutional investors contributing nearly 80 per cent of total inflows. Looking ahead, announced investments worth $60–70 billion over the next five years highlight strong confidence from hyperscale operators and joint-venture platforms.
India’s operational data centre capacity currently stands at approximately 1.4–1.6 gigawatts (Gw) across 164 facilities, with over 700 megawatts under construction and an additional 1–1.2 Gw in the pipeline. Capacity is expected to reach 1.7–2 Gw by 2026 and expand further to 4–5 Gw by 2030, reflecting sustained infrastructure development. This growth is driven by increasing internet penetration, enterprise cloud migration, and the rise of AI and high-performance computing, alongside surging demand from digital payments, OTT platforms, and 5G services. With average monthly wireless data usage exceeding 25 GB per user, the need for scalable data storage and processing infrastructure continues to intensify.
Mumbai leads as India’s largest data centre hub, accounting for nearly half of the operational capacity, followed by Chennai and the National Capital Region, while cities like Pune, Bengaluru, and Hyderabad are emerging as key secondary markets. Tier-II cities including Ahmedabad, Kochi, Jaipur, and Visakhapatnam are also gaining traction due to lower land costs and improving connectivity. Supported by favorable government policies, cost advantages, and expanding digital ecosystems, India is steadily positioning itself as a strategic data infrastructure hub in the Asia-Pacific region.
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