Square Yards reports that India's data centre expansion will drive demand for 195 million (mn) square feet of housing by 2030 as digital infrastructure investments rise. The planned 9,030 megawatt (MW) pipeline is estimated to generate about 0.433 mn jobs across construction, utilities, logistics, maintenance, security and ancillary services. That employment and associated capital expenditure are expected to stimulate residential demand beyond traditional IT hubs. The report frames data centres as emerging anchors for urban growth.

The analysis finds data centres attract investment in power, fibre connectivity and logistics, which encourages business and developer confidence to invest locally. The most significant housing impact is likely within five to 15 kilometres of facility sites where infrastructure upgrades and civic amenities are prone to emerge. Over time these corridors could host mixed use developments, retail and commercial infrastructure that support new communities. The study positions data centres alongside highways and industrial corridors as drivers of property cycles.

State estimates in the report show Maharashtra with more than 54 mn square feet of potential demand, Karnataka nearly 28 mn, Andhra Pradesh over 23 mn, Uttar Pradesh about 22.7 mn, Telangana 21.6 mn and Tamil Nadu 19.4 mn. The research highlights Noida, Visakhapatnam and GIFT City as emerging locations likely to benefit as investments accelerate. These clusters are expected to widen the geography of housing demand beyond metros. Planners and developers will need to account for long term utilities and transport.

India currently generates nearly 20 per cent of the world's digital data but accounts for only four per cent of global data centre capacity, underlining scope for expansion as artificial intelligence, cloud computing and enterprise digitisation advance. The report suggests the investment sequence in digital infrastructure could catalyse a fresh infrastructure led housing cycle similar to those around IT parks. Square Yards research leaders indicate the opportunity will reach Tier II and Tier III cities as digital corridors spread. Policymakers and investors are urged to factor employment potential into residential planning.