India’s data centre capacity to rise fivefold by 2030

31 Oct 2025 CW Team

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.

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