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India’s DC capacity to cross 4,500 MW by 2030 as USD 20-25 billion of future investments likely to materialize
India’s DC capacity to cross 4,500 MW by 2030 as USD 20-25 billion of future investments likely to materialize

June 2, 2025

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India’s DC capacity stands at 1,263 MW as of April 2025; to cross 4,500 MW by 2030. DCs are likely to attract investments to the tune of USD 20-25 billion in the next 5-6 years.


India’s data center (DC) market has entered a transformative phase and has scaled up significantly in recent years. DC capacity has grown over 4X times in the last 6-7 years and stands at 1,263 MW as of April 2025. This growth is driven by the surge in demand for digital & cloud services, increasing adoption of Artificial Intelligence (AI) & Internet of Things (IoT), and higher internet penetration, supported by favorable government policies. At the city level, Mumbai continued to account for majority of the DC capacity with 41% share, followed by Chennai & Delhi NCR at 23% & 14% respectively. This rapid expansion in capacity has resulted in over 3X times increase in real estate footprint over the last 6-7 years, across top seven DC markets of the country, taking it to 16 million sq ft as of April 2025.

According to our recent report “The digital backbone: Data center growth prospects in India DC capacity across the top seven cities is expected to cross 4,500 MW by 2030 which in turn is likely to translate into real estate footprint of around 55 million sq ft in the next 5-6 years. This potential growth is supported by established global connectivity through submarine cables, availability of land & power at comparatively lower costs, supportive government policies, and burgeoning demand. Additionally, major DC operators are planning to expand their presence and are committing long-term investments across multiple Tier II/III cities.

 

India DC market capacity and real estate footprint


Mumbai drove 44% of the DC capacity additions since 2020

On the supply front, India has witnessed 859 MW of capacity addition across the top seven primary DC markets since the beginning of 2020. In terms of geographical spread, 44% of the new supply since 2020 was concentrated in Mumbai. This was followed by Chennai and Delhi NCR which together accounted for 42% of the capacity addition since 2020.

In the next 5-6 years too, majority of the primary DC markets are set to witness significant influx of new supply. These Tier I markets are likely to witness 3,000- 3,700 MW of DC capacity additions during 2025-2030, about 4X times compared to the new supply during 2020-2025. While Mumbai will continue to dominate the overall DC market, relatively smaller growth markets such as Hyderabad, Bengaluru and Pune are likely to see multifold growth in inventory levels. Hyderabad, specifically, is likely to see significant traction and emerge as a major hub, in addition to cities such as Mumbai, Chennai & Delhi NCR. 

 

Supply side trends in India’s DC market 

 

DCs exceeding 50 MW to account for nearly two-thirds of the capacity by 2030

The rise in proportion of larger-sized DCs (>20 MW) from 42% during 2020 to 56% as of April 2025, indicates heightened traction in large hyperscale data centers, especially in recent years. About 44% of the new supply since 2020 was in the 21-50 MW category. Within the 21-50 MW category, Mumbai drove about three-fourths of the new supply additions. Interestingly, Chennai accounted for 45% of the new completions during the period in the >50 MW category. Going ahead we estimate, DCs exceeding 50 MW capacity are likely to account for nearly two-thirds of the inventory by 2030. 

DC industry to see investments worth USD 20-25 billion over the next 5-6 years

The scale-up in Indian DC industry has been accompanied by equally impressive investments in the last 5-6 years. The industry has already seen investments to the tune of USD 14.7 billion since the beginning of 2020. These investments have been largely focused on land acquisition, project construction & development etc. In the next 5-6 years, amidst massive adoption of cloud computation and AI in India, DCs are likely to attract investments to the tune of USD 20-25 billion.


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Colliers India
Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

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