India's Data Centre Boom: A Power Surge in Digital Infrastructure

India's data centre industry is on the brink of a transformative expansion, with an estimated addition of 2-3 GW capacity within the next 5-7 years, a report by Vestian highlights. The surge is primarily driven by burgeoning AI adoption, expanding hyperscale cloud deployments, and continuous enterprise digital transformation.

The report indicates that India's data centre market, valued at approximately USD 10 billion in 2025, is projected to reach USD 22 billion by 2030. Notably, the sector is witnessing robust development with over 700 MW construction underway and an additional 1-1.2 GW in the planning stages, backed by nearly USD 30 billion in cumulative investments.

Mumbai remains the dominant player, accounting for nearly half of India's data centre capacity. Meanwhile, Chennai and Delhi NCR serve key enterprise sectors, and emerging markets like Hyderabad, Pune, and Bengaluru gain traction. A staggering USD 13-15 billion has been invested between 2020 and 2024, predominantly by foreign investors.

Looking forward, investments totaling USD 60-70 billion have been announced for the coming five years, focusing on hyperscale campus development. The momentum is bolstered by artificial intelligence growth and expanding cloud infrastructure. Tight vacancy levels in prime markets are expected to lead to expansion into other cities.

Government initiatives aimed at improving regulatory frameworks and integrating renewable energy will further aid long-term growth. With capital inflows, AI adoption, and digital advancements, India is poised to become a pivotal digital infrastructure hub in the Asia-Pacific region, the report concludes.