India’s data centre industry is poised for rapid expansion, with installed capacity projected to reach three gigawatts (GW) by 2030, up from 1.1 GW in 2024, according to a report by Avendus Capital titled A Multi-Year Growth Proxy on India’s Data Explosion and Localisation Wave. Annual investments in the sector, currently around Rs. 8,582-12,870 crore (US$ 1-1.5 billion) are expected to double in the coming years. The key drivers include surging data consumption, the rise of artificial intelligence (AI) and cloud adoption, and regulatory pushes for data localisation. By 2033, demand is projected to reach six GW, creating a supply gap of 1.5 GW, as available capacity is likely to be only 4.5 GW. Core markets are expected to see a proliferation of hyperscale-ready infrastructure, while tier II and tier III cities will benefit from edge-ready capacity to support latency-sensitive applications.
Government incentives such as subsidised land banks and electricity duty waivers are playing a pivotal role in accelerating capacity addition. While incumbents like ST Telemedia Global Data Centres (STT GDC) and Sify continue to lead, fresh players are also entering the space to meet enterprise demand. Notably, Delhi-NCR-based Anant Raj Ltd has announced a capital expenditure of Rs. 18,000 crore (US$ 2.1 billion) to scale up from 28 megawatts (MW) in FY26 to 307 MW by FY32. “With pre-zoned sites, policy support, and robust power access, we are well-positioned to serve both public and private sector clients,” said Managing Director, Anant Raj Ltd., Mr. Amit Sarin.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.