Bengaluru reporting indicates that India’s data centre market is projected to reach 22 billion dollars (22 bn) by 2030, up from 10 billion dollars (10 bn) in 2025, driven by rising adoption of artificial intelligence, growing demand for cloud infrastructure and rapid expansion of digital platforms. Workplace solutions firm Vestian projects strong momentum and increased infrastructure opportunities. The assessment underlines a substantial scaling of capacity and capital deployment across the sector.

Vestian expects installed capacity to expand from around one point seven to two point zero gigawatts (GW) by the end of 2026 to about four to five gigawatts (GW) by 2030, supported by cumulative investments approaching 30 billion dollars (30 bn). Mumbai is anticipated to retain a majority share of operational capacity owing to robust subsea cable connectivity, an established ecosystem and strong interest from hyperscale operators. Secondary markets such as Bengaluru, Hyderabad and Pune are identified as key expansion centres.

The firm notes that tier two cities are gradually emerging, with operational capacity in these markets currently estimated at 60 to 80 megawatts (MW) and expected to exceed 100 megawatts (MW) by the end of this year. The data centre sector attracted about 13 to 15 billion dollars (13-15 bn) in investments between 2020 and 2024, with approximately 80 per cent participation from foreign institutional investors. Developers are prioritising energy sourcing and cooling technologies to serve power intensive artificial intelligence workloads.

Vestian outlines an investment pipeline of nearly 60 to 70 billion dollars (60-70 bn) over the next five years, with joint venture led platforms helping to accelerate hyperscale campus development and capacity expansion across major markets. The company observes that policy measures such as single window clearances, 20 year tax exemptions, GST benefits and incentives extending to 2047 enhance the country’s competitiveness as a potential global data centre and artificial intelligence hub. Market participants are preparing expanded capacity plans and focusing on regulatory and power procurement strategies.