+
India’s data centre capacity to rise fivefold by 2030
ECONOMY & POLICY

India’s data centre capacity to rise fivefold by 2030

India’s data centre (DC) capacity is set for a dramatic expansion, with operational capacity expected to double based on projects currently under construction and rise fivefold by 2030 if pipeline projects are fast-tracked, according to a Macquarie Equity Research report.

India currently has 1.4 gigawatts (GW) of operational DC capacity, with another 1.4 GW under construction and nearly 5 GW in the planning stage, the report stated.

This surge is being driven by data localisation policies, a supportive regulatory environment, government incentives, and rapid cloud adoption, among other growth enablers.

The share of DCs in India’s total electricity demand is projected to rise from 0.8 per cent in 2024 to between 1.9 and 3.2 per cent by 2030. Cumulative capital expenditure, excluding server costs, is estimated at $30–45 billion (Rs 2.5–3.8 trillion) over the next five years.

The expansion outlook follows a wave of gigawatt-scale DC investment announcements. Earlier this month, Google unveiled plans for a $15 billion AI infrastructure hub in Visakhapatnam, Andhra Pradesh, including a gigawatt-scale data centre developed in partnership with the Adani Group.

Similarly, Tata Consultancy Services announced a $6.5 billion investment to build a 1 GW DC network across India. Reliance Jio has also revealed its plans for a fully integrated green AI DC in Jamnagar, in partnership with Meta and Google, while Amazon Web Services (AWS) has committed $13 billion to expand its cloud capacity in India by 2030.

However, Macquarie cautioned that a dedicated national DC policy is needed, especially as key hubs such as Mumbai and Chennai face water stress alongside infrastructure challenges.

“India needs a DC policy that accounts for water use as well as critical infrastructure like land and electricity,” the report noted.

At present, Mumbai accounts for about 40 per cent of India’s operational DC capacity — slightly higher than Hong Kong’s — while Chennai contributes around 20 per cent of the total.

India’s data centre (DC) capacity is set for a dramatic expansion, with operational capacity expected to double based on projects currently under construction and rise fivefold by 2030 if pipeline projects are fast-tracked, according to a Macquarie Equity Research report. India currently has 1.4 gigawatts (GW) of operational DC capacity, with another 1.4 GW under construction and nearly 5 GW in the planning stage, the report stated. This surge is being driven by data localisation policies, a supportive regulatory environment, government incentives, and rapid cloud adoption, among other growth enablers. The share of DCs in India’s total electricity demand is projected to rise from 0.8 per cent in 2024 to between 1.9 and 3.2 per cent by 2030. Cumulative capital expenditure, excluding server costs, is estimated at $30–45 billion (Rs 2.5–3.8 trillion) over the next five years. The expansion outlook follows a wave of gigawatt-scale DC investment announcements. Earlier this month, Google unveiled plans for a $15 billion AI infrastructure hub in Visakhapatnam, Andhra Pradesh, including a gigawatt-scale data centre developed in partnership with the Adani Group. Similarly, Tata Consultancy Services announced a $6.5 billion investment to build a 1 GW DC network across India. Reliance Jio has also revealed its plans for a fully integrated green AI DC in Jamnagar, in partnership with Meta and Google, while Amazon Web Services (AWS) has committed $13 billion to expand its cloud capacity in India by 2030. However, Macquarie cautioned that a dedicated national DC policy is needed, especially as key hubs such as Mumbai and Chennai face water stress alongside infrastructure challenges. “India needs a DC policy that accounts for water use as well as critical infrastructure like land and electricity,” the report noted. At present, Mumbai accounts for about 40 per cent of India’s operational DC capacity — slightly higher than Hong Kong’s — while Chennai contributes around 20 per cent of the total.

Next Story
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App