India's data centre footprint to reach 101 mn sq ft by 2030; $300 bn investment lined up: Anarock Capital

India’s data centre footprint is projected to exceed 101 million sq ft by 2030, compared with nearly 27 million sq ft in the first half of 2026, according to Anarock Capital’s latest report, Data Centre: The Blueprint of the Digital Fortress in India. The sector has expanded sharply from just 0.6 million sq ft in 2007. 

More than $300 billion in investment commitments are expected to support the upcoming supply, positioning India among the fastest-growing data centre markets globally. 

Capacity set to more than triple 

Data centre capacity is following a similar growth trajectory. India’s installed capacity has crossed 1.8 GW as of H1 2026, up from less than 1 GW a few years ago. The development pipeline is expected to take total capacity beyond 6.7 GW by the end of the decade, representing more than a threefold increase over the next four years. 

“The projected 101 million sq ft data centre footprint highlights the sheer physical scale of the real estate opportunity,” said Shobhit Agarwal, CEO, Anarock Capital. 

Unlike conventional office and industrial developments, data centres are highly infrastructure-intensive assets requiring large land parcels, substantial power capacity, advanced cooling systems, robust connectivity and high levels of operational resilience, he said. 

The expansion will generate demand not only for specialised real estate but also for land, power infrastructure, renewable energy, engineering and construction services, fibre connectivity and cooling solutions. 

Mumbai-MMR remains dominant hub 

Mumbai-MMR continues to be India’s leading data centre market, supported by its financial and commercial ecosystem, enterprise demand, and connectivity advantages. 

However, the market is increasingly expanding into other major digital and business centres, including Chennai, Bengaluru, Delhi-NCR and Hyderabad. The emergence of these clusters is being driven by the availability of land and power, network connectivity, access to renewable energy and proximity to major demand centres. 

This geographical diversification could create new opportunities for real estate development beyond established data centre hubs. 

AI emerges as key growth driver 

The rapid adoption of artificial intelligence (AI) is expected to become one of the biggest drivers of data centre demand. AI applications require significantly greater computing power, storage capacity and energy than conventional digital services, increasing the infrastructure requirements of next-generation facilities. 

“AI’s explosive growth adds another powerful dimension to this opportunity,” Agarwal said. As businesses, governments and consumers adopt AI at scale, data centres are evolving from infrastructure supporting digital activity into critical assets underpinning economic growth and technological competitiveness. 

Globally, data centre capacity crossed 92 GW in H1 2026 and is projected to exceed 210 GW by the end of 2030, with investment commitments estimated at around $3 trillion by H1 2026. 

Policy measures are also supporting the sector. The Digital Personal Data Protection Act, 2023 has reinforced the need for secure and compliant domestic data infrastructure. 

The infrastructure status granted to data centres has improved access to long-tenure financing, with interest rates of around 9.5-10.5% and tenures extending up to 12 years. A proposed tax holiday through 2047 for eligible global cloud service providers could further enhance India’s competitiveness. 

The next phase of expansion will depend heavily on the availability of reliable power, suitable land, high-speed connectivity, and renewable energy.