India's Data Centre capacity to reach 5 GW by 2030; Market size USD 22 billion: Vestian

New Delhi [India], April 13 (ANI): India's data centre capacity is projected to reach approximately 5 gigawatts (GW) by 2030, driven by a surge in artificial intelligence adoption and a massive pipeline of institutional investment. This expansion marks a leap from the current operational capacity of 1.4-1.6 GW, positioning the country as a primary digital infrastructure hub within the Asia-Pacific region.
As per a report by Vestian, the domestic market reached a valuation of USD 10 billion in 2025 and is on track to hit USD 22 billion by 2030. With over 700 megawatts (MW) currently under construction and another 1.2 GW in the planning stages, the report expects the sector to add 2-3 GW over the next five to seven years. This growth is supported by a cumulative investment commitment of nearly USD 30 billion by the end of 2026.
"India's data centre sector is poised for robust growth, supported by increasing AI adoption, expanding hyperscale cloud deployments, and sustained enterprise digital transformation. Installed capacity is expected to expand from around 1.7-2.0 GW by end-2026 to approximately 4-5 GW by 2030, backed by nearly USD 30 Bn in cumulative investments," the report stated.
Shrinivas Rao, FRICS, CEO, Vestian, said, "India's data centre sector is rapidly transforming on the back of strong policy support and rising digital demand. Despite a limited share of global capacity, India has a huge upside potential to lead in Al infrastructure. With single-window clearances, 20-year tax exemptions, GST benefits, and incentives extending to 2047, India is strategically positioned to emerge as a global data centre and Al hub."
The report also noted that India maintains a structural advantage over mature markets like Singapore and Japan. Construction costs in India range between USD 6-7 million per megawatt, complemented by favourable power tariffs and cost-efficient labour. These factors have attracted significant global interest, with foreign institutional investors accounting for 80 per cent of the USD 13-15 billion deployed in the sector between 2020 and 2024.
"State-level data centre policies provide structured fiscal incentives, power cost rationalisation, and renewable energy enablement to enhance project viability. Single-window clearances and recognition of essential services are accelerating approvals and reducing operational risk. Coordinated policy support strengthens long-term investor confidence and deployment efficiency," according to Vestian.
According to the city-wise analysis of operational capacity, Mumbai maintains a dominant lead in the sector, accounting for 49 per cent of the country's total data centre infrastructure. Chennai follows as a significant hub with an 18 per cent share, while the National Capital Region (NCR) contributes 11 per cent to the national capacity.
The remaining operational shares are distributed among Pune at 8 per cent, Bengaluru at 7 per cent, and Hyderabad at 5 per cent. Kolkata and a cluster of other cities, including Ahmedabad, Kochi, Mohali, Vijayawada, Jaipur, Nashik, Bhubaneshwar, Indore, Gandhinagar, and Raipur, each represent 1 per cent of the operational market.
The demand for these facilities is underpinned by India's massive digital footprint. Telecom subscriptions have exceeded 1.23 billion, while internet users are nearing the 1 billion mark. Average monthly wireless data usage has crossed 25 GB per subscriber, fueled by digital payments, OTT platforms, and the ongoing rollout of 5G services.
"Rising investment in generative AI and high-performance computing is increasing rack densities and power intensity across new deployments. AI workloads are accelerating hyperscale campus development and reshaping infrastructure design standards across India's data centre ecosystem," the report noted. (ANI)

(This article was generated from news agency ANI without modifications to the text.)