According to a report by Avendus Capital, India’s data centre capacity is expected to nearly triple over the next five years, driven by rising artificial intelligence (AI) adoption and cloud demand, creating a $23 billion investment opportunity.
The investment bank, in the third edition of its annual data centres report, said India could see the deployment of 650,000 to 700,000 graphics processing units (GPUs) across data centres over the next five years as enterprises scale up AI consumption.
India’s built data centre capacity is projected to grow from 1.6 gigawatts (GW) in 2025 to around 5 GW by 2030, implying a compound annual growth rate (CAGR) of 26 per cent. Developers currently have an active pipeline of more than 3 GW, including nearly 1 GW of AI-focused data centre capacity. This expansion will require capital investment of approximately $23 billion over the five-year period.
The report also highlighted GPU infrastructure as an emerging high-return segment within the broader data centre ecosystem, noting that large-scale GPU deployments can generate equity internal rates of return of more than 28 per cent at current capital expenditure and pricing levels.
