As per the latest Vestian report cited by multiple Indian business outlets, India’s data centre market to surge to 22-billion by 2030. According to the report India’s data centre market is projected to more than double from about $10 billion in 2025 to $22 billion by 2030, driven by cloud adoption, AI workloads and rising digital consumption. At the same time, India’s operational data centre base already stands at 164 facilities with about 1.4-1.6 GW of installed capacity.

That makes this one of the most important infrastructure stories in India’s digital economy. The expansion is not being driven by one trend alone. It is being powered by higher internet usage, enterprise cloud migration, rapid AI adoption, 5G-led data growth, and strong investor appetite for digital infrastructure.

What Is Fueling the Market Boom

A few clear drivers are behind the current expansion in India’s data centre sector:

• Cloud adoption is rising across enterprises and digital businesses.
• AI and high-performance computing are increasing the demand for processing and storage infrastructure.
• 5G rollout, digital payments, and OTT growth are pushing up data consumption.
• Average monthly wireless data usage now exceeds 25 GB per user, showing how fast demand is scaling.
• Policy support, including single-window clearances, tax incentives, and GST-related benefits, is improving the investment environment.

In simple terms, India is not just building more data centres because of current demand. It is building them because the next wave of demand from AI, digital commerce, and enterprise transformation is expected to be much larger.

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Capacity Expansion Is Already Underway

The sector is not waiting until 2030 to grow. More than 700 MW is already under construction, with another 1-1.2 GW in the planning pipeline. Installed capacity is expected to rise to around 1.7-2 GW by the end of 2026 and then expand further to 4-5 GW by 2030.

This means India’s data centre market to surge to 22-billion is also a physical infrastructure story. Behind the market-size forecast is a real buildout of power, cooling, land, network connectivity, and compute capacity across the country.

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Investment Momentum Remains Strong

The capital flowing into the sector is just as significant as the capacity growth. Between 2020 and 2024, India’s data centre industry attracted roughly $13-15 billion in investment, with foreign investors accounting for nearly 80% of inflows. Looking ahead, announced investments over the next five years are estimated at $60-70 billion.

India also has a cost advantage. Construction costs are estimated at around $6-7 million per MW, which is lower than mature Asia-Pacific markets such as Singapore and Japan. Cost competitiveness is one reason India is emerging as a preferred market for large-scale capacity additions.

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Which Cities Are Leading the Growth

Mumbai remains the country’s largest data centre hub, accounting for nearly 49% of operational capacity. It is followed by Chennai (18%) and the National Capital Region (11%). Other important markets include Pune (8%), Bengaluru (7%) and Hyderabad (5%). Chennai benefits from submarine cable landing stations, while Mumbai continues to gain from strong connectivity and financial-services demand.

At the same time, operators are increasingly looking beyond the biggest metros. Cities such as Ahmedabad, Kochi, Jaipur and Visakhapatnam are being explored as Tier-II expansion markets. These locations currently host about 60–80 MW of capacity and are expected to cross 100 MW by 2026.

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India’s Data Centre Market at a Glance

The Bottom Line

India’s data centre market to surge to 22-billion captures a broader reality: India is becoming a major digital infrastructure market in Asia-Pacific. The mix of AI adoption, rising data usage, policy support, foreign capital, and cost competitiveness is creating a strong foundation for long-term growth. The next few years will determine how fast that pipeline turns into operating capacity, but the direction is already clear. India’s data centre boom is no longer emerging; it is underway.

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