India is on the verge of a massive data center (DC) boom. According to a recent report by Macquarie Equity Research, the country’s DC capacity — currently at 1.4 gigawatts (GW) — is expected to double with ongoing construction projects and could grow fivefold by 2030 if the planned pipeline is accelerated.
This unprecedented expansion is being fueled by several key factors: data localization laws, supportive government policies, subsidies, and a surge in cloud adoption. Together, these elements are positioning India as one of the world’s fastest-growing data infrastructure hubs.
At present, India has 1.4 GW of operational capacity, another 1.4 GW under construction, and approximately 5 GW in the planning stage. As these projects come online, the country’s digital backbone will strengthen significantly, enabling faster, more secure, and more efficient data management.
The report also highlights that the data center sector’s share of India’s total electricity demand could rise from 0.8% in 2024 to between 1.9% and 3.2% by 2030. This reflects the growing energy needs of an increasingly digital economy.
From an investment standpoint, the cumulative capital expenditure (excluding servers) in this sector is projected to reach between ₹2,64,930 crore (US$30 billion) and ₹3,97,395 crore (US$45 billion) over the next five years — a clear signal of investor confidence in India’s digital future.
Major announcements have underscored this momentum:
- Google is partnering with Adani Group to invest ₹1,32,465 crore (US$15 billion) in an AI infrastructure hub in Visakhapatnam.
- Tata Consultancy Services (TCS) has unveiled plans to build a 1 GW data center network worth ₹57,402 crore (US$6.5 billion).
- Jio, in collaboration with Meta and Google, is developing a fully integrated green AI data center project in Jamnagar.
- Amazon Web Services (AWS) has pledged ₹1,14,803 crore (US$13 billion) to expand its India cloud capacity by 2030.
Currently, Mumbai leads the country’s data center market, contributing nearly 40% of India’s total capacity, followed by Chennai at 20%. These cities, along with emerging DC hubs across India, are set to play a crucial role in shaping the country’s digital economy and global tech competitiveness.
As India accelerates toward becoming a digital powerhouse, its data center ecosystem stands at the heart of this transformation — driving innovation, connectivity, and sustainable growth.
Source:IBEF
