India's Data Centre Market Poised for Significant Growth by 2030, Expected to Reach 3,400 MW IT Capacity

India’s data centre market is on the fast track to becoming a global hub, with projections showing a remarkable expansion in the coming years. With an anticipated demand of over 450 MW IT capacity by 2025, the country is set to witness substantial growth in its data centre infrastructure. According to a recent report by Savills India, the data centre sector is expected to grow at a compound annual growth rate (CAGR) of 21% between 2024 and 2030, reaching an estimated 3,400 MW IT capacity by 2030.

Increasing Demand for Data Centres in India

The demand for data centres in India is rising rapidly due to the country’s digital transformation. Key drivers include the rise of cloud computing, the expansion of big data, and the increasing use of technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and e-commerce. This demand is particularly fueled by sectors like hyperscalers, banking, financial services, IT, and ITeS, all of which rely heavily on data centre operations for colocation and support services.

Growth Across Major Cities

Mumbai is the leader in data centre absorption, accounting for 53% of the total absorption, followed by cities like Hyderabad (14%), Chennai, and Pune (10% each). In 2024, India experienced an absorption of 407 MW IT capacity and added 191 MW IT capacity. These numbers reflect the rapid growth of data centre infrastructure in major cities, with Mumbai, Chennai, Hyderabad, and Pune seeing significant development.

Expansion to Tier-II and Tier-III Cities

With the increasing penetration of 5G and mobile applications, demand for edge data centres is also rising in smaller cities such as Bhubaneswar, Patna, Lucknow, Jaipur, and Kochi. The expansion of data centre land transactions in cities like Mumbai, Hyderabad, Pune, Chennai, and Bengaluru further indicates the growing need for data centre infrastructure across the country.

By 2030, India’s data centre market is expected to reach 3,400 MW IT capacity, marking a significant milestone for the country’s digital economy.