India’s data centre (DC) industry is undergoing a major transformation, with capacity projected to surpass 4,500 megawatts (MW) by 2030. This surge is fueled by the rapid expansion of hyperscale data centres across major metro hubs and Tier II/III cities, driven by escalating demand for cloud computing, Artificial Intelligence (AI) workloads, and edge computing applications.

Currently, the data centre market in India is concentrated predominantly in Mumbai and Chennai, which together account for nearly 64% of the nation’s data centre capacity—Mumbai alone contributes 41%, while Chennai holds 23%. The Delhi NCR region adds another 14%, making it the third largest hub. Over the past six to seven years, the real estate footprint for data centres across seven major cities has nearly tripled, highlighting robust growth.

According to the Colliers report titled “The Digital Backbone: Data Centre Growth Prospects in India,” India’s data centre capacity saw an addition of 859 MW from 2020 to April 2025, with Mumbai responsible for 44% of this new supply. Chennai and Delhi NCR collectively contributed 42%. Moving forward, between 2025 and 2030, the primary data centre markets are expected to add between 3,000 and 3,700 MW of fresh capacity. Notably, Mumbai and Hyderabad are forecasted to individually contribute between 1,000 and 1,200 MW, positioning Hyderabad as an emerging data centre hub.

Investment in India’s data centre sector has been substantial. Since 2020, around Rs. 1,25,000 crore (US$ 14.63 billion) has been committed. This investment is expected to increase, with an estimated Rs. 1,70,840–2,13,550 crore (US$ 20–25 billion) planned by 2030. High-profile projects include AdaniConneX’s 100 MW hyperscale campus in Chennai, Yotta Infrastructure’s developments valued at Rs. 39,000 crore (US$ 4.56 billion), and CapitaLand Investment’s Rs. 1,940 crore (US$ 227 million) facility in Navi Mumbai.

The market is shifting towards AI-ready, high-density infrastructure, with data centres above 50 MW projected to account for nearly two-thirds of the total inventory by 2030. Furthermore, the sector is making strides in sustainability, as green-certified data centres currently comprise about 25% of the market but are expected to grow to 30–40% by 2030. This highlights a strong commitment to renewable energy integration and environmentally sustainable practices.

India’s data centre capacity growth underscores the country’s critical role in the global digital economy, positioning itself as a major hub for cloud services, AI development, and edge computing in the coming decade.

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