India’s data centre market to hit $22 billion by 2030, backed by $70 billion investment pipeline: Vestian
ADVERTISEMENT
India’s data centre market is set for a sharp expansion, with its size projected to more than double from $10 billion in 2025 to $22 billion by 2030, according to a report by Vestian. The growth comes amid a broader global surge in digital infrastructure demand, where installed capacity is expected to exceed 100 GW by the end of the decade.
The domestic market’s rapid scale-up is being driven by rising internet penetration, accelerating enterprise cloud adoption, and the increasing use of artificial intelligence (AI) and high-performance computing. The rollout of 5G has further intensified data consumption, with average monthly wireless usage crossing 25 GB per user—signalling the urgent need for scalable and resilient data infrastructure.
India currently operates 164 data centres with an installed capacity of 1.4–1.6 GW. This is expected to expand significantly, with over 700 MW under construction and an additional 1–1.2 GW in the pipeline. By 2030, total capacity is projected to reach 4–5 GW, reflecting sustained demand across sectors.
Strong capital inflows, cost advantage fuel growth
Investment momentum remains robust. Between 2020 and 2024, the sector attracted $13–15 billion in funding, with foreign investors accounting for nearly 80% of inflows. The pipeline remains strong, with announced investments of $60–70 billion over the next five years, largely led by hyperscalers and joint ventures.
India’s cost competitiveness is also emerging as a key differentiator. Data centre construction costs stand at $6–7 million per MW—significantly lower than mature Asia-Pacific markets such as Singapore and Japan—enhancing the country’s appeal as a large-scale deployment hub.
Vestian CEO Shrinivas Rao noted that policy support, including long-term tax incentives, GST benefits, and single-window clearances, is accelerating sectoral growth and positioning India as a potential global hub for data centres and AI infrastructure.
Mumbai, Chennai dominate; tier-II cities gain traction
Geographically, data centre capacity remains concentrated in key metros. Mumbai leads with a 49% share, followed by Chennai at 18% and NCR at 11%. Emerging hubs such as Pune, Bengaluru, and Hyderabad are gaining ground due to strong IT ecosystems and lower operating costs.
At the same time, operators are increasingly exploring Tier-II cities including Ahmedabad, Kochi, Jaipur, and Visakhapatnam. These markets, currently hosting 60–80 MW of capacity, are expected to cross 100 MW by 2026, supported by improved infrastructure and favourable state policies.