India's Data Centre Market Projected to Reach $22 Billion by 2030
India’s data centre market to reach $22 billion by 2030
The Economic TimesImage: The Economic Times
India's data centre market, currently valued at approximately $10 billion, is expected to more than double to $22 billion by 2030. This growth is driven by the rise of cloud computing, artificial intelligence, and increasing data demands, with significant investments projected in the coming years.
- 01India's data centre market is projected to grow from $10 billion in 2025 to $22 billion by 2030.
- 02The sector attracted $13–15 billion in investments from 2020 to 2024, with foreign investors contributing 80%.
- 03A strong investment pipeline of $60–70 billion is anticipated over the next five years.
- 04Mumbai remains the largest data centre hub, with Chennai, Hyderabad, Bengaluru, and Pune emerging as secondary hubs.
- 05Installed capacity is expected to reach 4–5 GW by 2030, driven by increasing AI adoption and cloud infrastructure demand.
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India's data centre market is on a robust growth trajectory, expected to expand from approximately $10 billion in 2025 to $22 billion by 2030. This surge is primarily fueled by advancements in cloud computing, artificial intelligence, and the increasing need for data-intensive technologies. Between 2020 and 2024, the sector attracted around $13–15 billion in investments, with foreign institutional investors accounting for nearly 80% of the total inflows, according to property consultant Vestian. The investment outlook remains strong, with projected investments totaling $60–70 billion in the next five years, largely driven by hyperscale platforms and joint ventures. India's digital economy is rapidly evolving, supported by a growing internet user base and rising enterprise cloud adoption. The rollout of 5G infrastructure has significantly increased data consumption, necessitating scalable data centre solutions. Major cities like Mumbai, Chennai, Hyderabad, Bengaluru, and Pune are becoming key players in this sector, with operational capacity in Tier-II markets expected to exceed 100 MW by the end of 2026. Overall, the combination of favorable policies, competitive construction costs, and increasing demand positions India as a potential global hub for data infrastructure and AI.
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The growth of the data centre market is likely to create job opportunities and boost local economies in key metropolitan areas, while also enhancing digital infrastructure.
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