According to a report by S&P Global, India’s data centres are projected to become the Asia-Pacific region’s second-largest consumers of electricity by 2030, overtaking Japan and Australia. Electricity demand from the sector is expected to rise nearly fivefold, from 13 terawatt-hour (TWh) in 2024 to 57 TWh by 2030, representing 2.6 per cent of India’s total generation compared to the current 0.84 per cent.
This increase is being driven by rapid capacity expansion, fuelled by the country’s accelerating digital economy, large-scale AI infrastructure rollouts, and growth in hyperscale cloud services.
Industry reports highlight that India already leads the Asia-Pacific region (excluding China) in data centre capacity and is expected to add around 850 megawatts between 2024 and 2026, more than any other regional competitor. Low electricity tariffs, government incentives, and improvements in renewable energy integration have also made India the most competitive destination in the region for large-scale data centre investments and sustainable growth.
