India’s data centre market is projected to more than double from around USD 10 billion in 2025 to USD 22 billion by 2030, according to a latest report by Vestian. The growth is expected to be driven by rising cloud adoption, expanding AI workloads and increasing demand for data-intensive digital services.

Vestian noted that the global data centre sector is witnessing rapid expansion, with current installed capacity estimated at 40–50 GW and projections exceeding 100 GW by 2030. Within this evolving landscape, India is emerging as a strategic hub in the Asia-Pacific region, supported by its fast-growing digital economy, rising internet user base and increasing investments from hyperscale operators.

The report highlighted that India currently has an operational capacity of around 1.4–1.6 GW spread across 164 data centres. More than 700 MW is under construction, while another 1–1.2 GW is planned. Vestian projects the country’s data centre capacity to rise to 4–5 GW by 2030.

The growth is being fuelled by rising internet and telecom subscribers, enterprise cloud adoption, expansion of high-performance computing workloads, and increasing preference for digital payments and OTT platforms. The rollout of 5G has also pushed average monthly wireless data consumption beyond 25 GB per user, further strengthening the need for scalable infrastructure.

“India's data centre sector is rapidly transforming on the back of strong policy support and rising digital demand,” said Shrinivas Rao, FRICS, CEO, Vestian. He added that incentives such as single-window clearances, long-term tax exemptions and GST benefits could help India emerge as a global data centre and AI hub.

Between 2020 and 2024, India’s data centre industry attracted investments worth USD 13–15 billion, with foreign institutional investors contributing nearly 80% of the capital inflows. Vestian said announced projects worth USD 60–70 billion over the next five years indicate a robust investment pipeline.

Mumbai remains India’s largest data centre hub, while Chennai is emerging as a key gateway due to multiple submarine cable landings. Hyderabad, Bengaluru and Pune are also gaining traction as secondary markets.