India’s expanding data centre ecosystem could generate demand for nearly 195 million sq ft of residential space by 2030, according to a report by proptech company Square Yards.

The report estimates that the country’s proposed data centre pipeline of approximately 9,030 MW could create nearly 433, 000 jobs across supporting industries and services, strengthening housing demand in surrounding locations.

Unlike conventional commercial developments, data centres attract investments in power infrastructure, fibre connectivity, logistics, commercial facilities and ancillary services. These investments can gradually transform nearby regions into urban and economic growth corridors.

India generates nearly 20 per cent of the world’s digital data but accounts for only around 4 per cent of global data centre capacity, indicating considerable potential for expansion. Rising adoption of artificial intelligence, cloud computing and enterprise digitisation is expected to accelerate investment in the sector.

Vivek Agarwal, Co-Founder and Chief Technology Officer, Square Yards, said data centres could become the next major infrastructure anchors after highways, airports, industrial corridors and information technology parks.

While data centre facilities directly employ a limited workforce, Agarwal said investments in power, connectivity and logistics create confidence among businesses, developers and institutions, encouraging long-term residential and commercial development.

The report identifies a 5-15 km “Golden Ring” around major data centre facilities where residential townships, mixed-use developments, retail centres, transport infrastructure and civic amenities are expected to expand. Housing demand in these areas is likely to be supported by ancillary employment and wider economic activity.

Maharashtra is projected to generate more than 54 million sq ft of residential demand, followed by Karnataka at nearly 28 million sq ft and Andhra Pradesh at over 23 million sq ft.

Uttar Pradesh could record approximately 22.7 million sq ft of demand, followed by Telangana at 21.6 million sq ft and Tamil Nadu at 19.4 million sq ft.

The report also identifies Visakhapatnam, Noida, Gujarat International Finance Tec-City and other infrastructure-rich locations as potential beneficiaries of sustained investment, improved connectivity and economic development.

Sunita Mishra, Vice President – Research and Insights, Square Yards, said housing demand generally follows locations offering strong employment opportunities. She added that the impact of data centre development would extend beyond major metropolitan areas to Tier-II and Tier-III cities.