India’s data centre sector is experiencing significant growth, with 407 megawatts (MW) of information technology (IT) capacity absorbed and 191 MW added across key cities, driven by increasing demand for cloud computing, big data, Internet of Things (IoT), Artificial Intelligence (AI), electronic-commerce (e-commerce), and digital transformation. Hyperscalers, Banking, Financial Services, and Insurance (BFSI), IT & Information Technology-enabled Services (ITeS), and service sectors are major contributors to this demand. In 2024, over 200 acres of land were acquired in cities like Mumbai, Hyderabad, Pune, Chennai, and Bengaluru, fueling expansions by data center operators and hyperscalers.
The data center market in India is expected to continue its upward trajectory, with a projected demand for over 450 MW IT capacity in 2025 and supply additions reaching 600 MW. The rise of 5G and mobile applications drives the demand for edge data centers in Tier-II and Tier-III cities, while Tier-I cities maintain strong growth. By 2030, India’s data center stock is anticipated to reach 3,400 MW IT, positioning the country as a key global data center hub.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.