India’s data center (DC) capacity is projected to double with the ongoing construction projects and may grow fivefold by 2030 if the planned pipeline is accelerated, according to a report by Macquarie Equity Research. The report highlighted that India currently has 1.4 gigawatt (GW) of operational DC capacity, with another 1.4 GW under construction and about 5 GW in the planning phase. This expansion is being driven by factors such as data localization laws, supportive government policies, subsidies, and increasing cloud adoption.
The report estimated that the DC sector’s share of India’s electricity demand could rise to 1.9-3.2% by 2030, up from 0.8% in 2024. Cumulative capital expenditure, excluding servers, is expected to reach between Rs. 2,64,930 crore (US$ 30 billion) and Rs. 3,97,395 crore (US$ 45 billion) over the next five years. Recent announcements include Google’s Rs. 1,32,465 crore (US$ 15 billion) investment in an Artificial Intelligence (AI) infrastructure hub in Visakhapatnam with Adani Group, Tata Consultancy Services’ Rs. 57,402 crore (US$ 6.5 billion) plan to build a 1 GW DC network, and Jio’s fully integrated green AI DC project in Jamnagar with Meta and Google. Amazon Web Services (AWS) has also pledged Rs. 1,14,803 crore (US$ 13 billion) to expand its India cloud capacity by 2030. Mumbai currently contributes nearly 40% of India’s total DC capacity, followed by Chennai at 20%, underscoring India’s rising prominence in the global digital infrastructure landscape.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.