As large enterprises, small- and medium-sized businesses, and start-ups shift from legacy physical servers to scalable cloud platforms, data centres (DCs) are emerging as the foundation of the digital economy. This transition is delivering greater speed, agility and innovation while optimising IT operations. With the country crossing the 1.3 GW data centre capacity milestone in May 2025, the combined strength of robust facilities, extensive fibre connectivity and reinforced cybersecurity frameworks is reshaping India’s technology landscape.
According to tele.net Research, India’s data centre sector is set for significant expansion, with projected capacity additions exceeding 7 GW over the next decade, marking a critical change in the country’s digital infrastructure development. Further, about 3.4 GW of data centre capacity is expected to be added by 2030, with most of this already under construction. Beyond 2030, a further 3.8 GW capacity is anticipated, largely in early planning. This trajectory reflects not only market demand but a broader shift in how digital infrastructure supports national development priorities.
From traditional to hyperscale
India’s data centre landscape has evolved from enterprise-owned facilities to sophisticated hyperscale operations. Four primary hubs have emerged over time, namely, Mumbai, Chennai, Bengaluru and Delhi National Capital Region (NCR), each strategically positioned to leverage strong infrastructure and proximity to undersea cable landing stations.
The Mumbai Metropolitan Region, encompassing Mumbai and Navi Mumbai, remains India’s data centre hub, holding about 45 per cent of operational capacity due to extensive submarine cables and its strategic location. Chennai ranks second at around 20 per cent, benefiting from proximity to Southeast Asia and strong regional connectivity. Beyond these hubs, Delhi NCR, Bengaluru, Pune and Hyderabad are gaining prominence, driven by tech-savvy ecosystems and rising enterprise data demand.
According to estimates by JLL, cloud service providers in India now lead demand for DCs, accounting for 54 per cent of requirements, followed by the banking, financial services and insurance sector at 18 per cent, and the technology sector at 12 per cent. This mix reflects a maturing digital economy, in which cloud adoption has transitioned from experimental to mission-critical.
Edge data centres
A key shift is the rise of edge DCs, which are redefining how digital services reach end-users. Unlike centralised facilities, edge computing brings processing closer to users through smaller and efficient sites in Tier II and Tier III cities.
Edge DCs currently account for less than 1 per cent of India’s total DC capacity (co-location). However, these facilities are gaining significant traction, particularly in Tier II and Tier III cities. According to estimates by ICRA, India’s edge DC capacity is set to triple, rising from 60-70 MW in 2024 to 200-210 MW by 2027, driven by the proliferation of emerging technologies.
This expansion serves several strategic purposes. For applications such as autonomous vehicles, real-time analytics and smart cities, reducing latency is essential to performance. The model also extends to adjacent domains. Electric vehicle (EV) charging stations are increasingly integrating edge capabilities, creating hybrid hubs that support both electrified transport and digital connectivity. This convergence illustrates how modern infrastructure can address multiple national priorities simultaneously.
Further, rising data traffic reinforces the need for this approach. With data traffic per smartphone expected to grow from 32 GB to 62 GB by 2030, as per estimates by Ericsson, edge infrastructure will be critical to maintaining service quality and controlling network costs.
Optical fibre cables
Optical fibre cables (OFCs) are the backbone of modern data centre connectivity, interlinking servers, switches and storage with high speed transmission and low latency. Their rapid adoption reflects the ability to move large volumes of data efficiently while minimising signal loss and delays, which is vital for real-time use cases such as financial transactions, cloud services, anomaly detection and video streaming. OFCs also offer enhanced security, being immune to electromagnetic and radio frequency interference that can affect copper, thereby keeping data secure within glass or plastic strands. Its scalability allows DCs to accommodate growing workloads as technology and data demands rise, while supporting a greener connectivity approach through lower transmission energy use and a design lifespan of 30 years or more.
The country’s rate of fibre expansion is more than twice the global growth rate – the market is growing at a CAGR of 13.58 per cent to reach $1.05 billion by 2028. OFC length is expected to grow at a CAGR of 15.7 per cent to 17.95 million route km (rkm) by 2034 from 4.2 million rkm in 2025.
Importantly, fibre’s adaptability to new technologies, via high-fibre-count and high-density cables, positions DCs to support 5G, artificial intelligence (AI)/machine learning (ML), cloud computing and internet of things (IoT), enabling the processing of large data sets hosted in cloud environments.
Even compact facilities with 40 racks may need thousands of fibre patch cords. A full tower can have 7,000-10,000 cross-connects, each involving multiple fibre hops and resulting in more than 40,000 patch cords per tower. With around 160 operational DCs in India, fibre demand is on a rise.
Cybersecurity and data privacy
Current scenario
India’s cybersecurity regime has been reshaped by the Digital Personal Data Protection [DPDP] Act, 2023, and the Telecom Act, 2023, which together establish comprehensive frameworks. The Ministry of Electronics and Information Technology’s ongoing review of 6,915 public responses on the DPDP Rules underscores the thoroughness of the approach.
The DPDP Act introduces penalties of up to Rs 2.5 billion for violations, signalling a strong commitment to data protection. Cross-border data transfer rules require robust compliance, while sector-specific requirements in banking, healthcare and telecom add further complexity.
DCs must implement end-to-end security architectures spanning physical safeguards, network protections and data encryption. ISO 27001 and SOC 2 have become baseline certifications, with many facilities pursuing additional standards to meet client needs.
Similarly, mandatory incident reporting within six hours for critical infrastructure creates operational challenges but strengthens national cybersecurity. Investments in security operations centres and automated incident response are rising to meet these demands.
Integrating physical safeguards in DCs
DCs require layered physical security, starting with site selection in geologically stable locations away from natural hazards. Perimeter defences, high fencing, vehicle barriers and 24/7 surveillance with advanced motion detection and integrated alerts form the next layer. Internally, facilities use segregated zones for critical components, biometric access controls and AI-enabled monitoring to prevent unauthorised entry, with secure cabinets and distributed systems reducing single points of failure. Comprehensive threat mitigation covers fire, flood and other emergencies through gas-based fire suppression.
Implementing cybersecurity controls in DCs
Modern DCs function as critical digital hubs, requiring comprehensive cybersecurity strategies that extend far beyond traditional physical security measures, beginning with effective network segmentation that virtually isolates different network components to contain potential breaches and minimise lateral movement. Adopting a zero-trust model, where no user or device, whether inside or outside the network, is trusted by default, ensures that identity verification, multifactor authentication and device profiling are continuously enforced. Proactive threat detection and monitoring capabilities leverage AI and ML to identify anomalies before they escalate into serious threats.
Similarly, comprehensive endpoint protection requires securing every device within the DC ecosystem, from servers to internet of things (IoT) devices, through regular patching, firmware updates and endpoint detection response solutions, coupled with secure supply chain practices that drastically reduce vulnerabilities in critical hardware and software components. Disaster recovery and redundancy protocols prepare for worst-case scenarios through secure, encrypted backups and regularly tested recovery procedures. Ultimately, continuous employee training serves as one of the strongest defensive barriers against cyber threats, addressing the reality that human error remains a leading cause of cybersecurity incidents through regular education on phishing, social engineering and secure practices, complemented by realistic drills that simulate high-stakes scenarios and ensure staff readiness to recognise and respond effectively to sophisticated cyber threats.
Sustainability and AI
The convergence of DCs, fibre infrastructure and cybersecurity is being reinforced by intelligent operations. IoT- and analytics-driven monitoring now feeds AI-assisted controls that optimise capacity, balance loads and surface anomalies in real time, reducing operating costs while enhancing reliability. Alongside this, operators are advancing renewable adoption in states such as Rajasthan and Gujarat. Advanced cooling and natural temperature management, which are often tuned by software, are turning efficiency into a core competitive edge.
The way forward
India’s DC ecosystem represents more than infrastructure build-out; it encapsulates the country’s digital transformation aspirations. By integrating robust facilities, expansive fibre connectivity and advanced cybersecurity, India is establishing a foundation to support emerging technologies, ranging from AI to autonomous systems.
As global digital services increasingly rely on distributed infrastructure, India’s investments, which are backed by high-quality fibre networks and strong security frameworks, position the country as a key node in the global digital economy. The continued development of this ecosystem will shape India’ s technological capabilities and economic competitiveness in an increasingly digital world.
Going forward, progress will require sustained investment, supportive policy and ongoing technical innovation. With the current momentum and strategic focus, India’s DC infrastructure is poised to become a defining element of the nation’s economic future, enabling digital services that will transform how citizens work, learn and interact in the years ahead.
