According to a report by Colliers India, the data centre market in South India driven by Chennai, Bengaluru, and Hyderabad is projected to grow by 65 per cent by 2030. This significant growth is driven by substantial government incentives, strategic infrastructure investments, and an increasing demand for digital services.
The report highlighted that the combined installed data centre capacity in Chennai, Bengaluru, and Hyderabad currently stands at nearly 200 MW. This foundation is set to be significantly bolstered, with 190 MW currently under construction and an additional 170 MW planned. Further, these developments are expected to increase the total capacity by 80 per cent over the next few years, highlighting the region’s strategic importance in supporting global digital infrastructure.
Furthermore, the report noted that Chennai leads with an installed capacity of 87 MW, with 156 MW under construction and 104 MW planned. Bengaluru, leveraging its strong IT ecosystem, has an installed capacity of 79 MW, with 10 MW under construction and 26 MW in the planning stages. Meanwhile, Hyderabad is rapidly emerging as a data centre hotspot with an installed capacity of 47 MW, 20 MW under construction, and 38 MW planned.
In addition, the report noted that the monthly recurring charges for data centres in South India are competitive, ranging between Rs 6,650 and Rs 8,500 per kW per month, offering significant value for money.
