According to a report by Vestian, India’s data centre market, valued at approximately $10 billion in 2025, is expected to more than double to $22 billion by 2030. The global data centre market is expanding rapidly, with 40 to 50 gigawatts (GW) of current installed capacity worldwide and projections exceeding 100 GW by 2030, driven largely by rapid growth in cloud computing, artificial intelligence (AI), and data-intensive technologies.
India is emerging as a strategic hub within the Asia-Pacific region. The country’s accelerating digital economy, expanding internet user base, and increasing investments from hyperscale operators are positioning it as a key destination for data infrastructure development. This growth is attributed to rising internet and telecom subscribers, growing enterprise cloud adoption, expanding AI and high-performance computing workloads, and shifting consumer preferences towards digital payments and over-the-top (OTT) platforms.
The rollout of 5G infrastructure has pushed average monthly wireless data consumption beyond 25 GB per user, reinforcing the need for scalable data centre infrastructure.
According to Vestian Research, India’s current operational capacity stands at 1.4 to 1.6 GW, with over 700 megawatts (MW) under construction. The country has 164 data centres and is expected to reach 4 to 5 GW of capacity by 2030.
The investment pipeline remains strong, with announced projects totalling $60 to 70 billion over the next five years, largely driven by hyperscale platforms and joint venture developments. India also offers a competitive cost advantage, with data centre construction costs of $6 to 7 million per MW, significantly lower than those in mature Asia-Pacific markets such as Singapore and Japan.
Mumbai remains the country’s largest data centre hub, driven by strong global connectivity and infrastructure advantages. Chennai serves as a key global data gateway, with multiple submarine cable landings enabling high-capacity, low-latency connectivity. Hyderabad, Bengaluru, and Pune are emerging as important secondary hubs owing to robust IT ecosystems, ample land availability, and competitive operating costs.
Data centre operators are increasingly exploring tier-2 cities to support distributed digital infrastructure. Cities such as Ahmedabad, Kochi, Jaipur, and Visakhapatnam are gaining traction due to competitive land availability, improving digital infrastructure, supportive state government policies, and growing enterprise demand. Operational capacity in tier-2 markets is currently estimated at 60 to 80 MW and is expected to exceed 100 MW by the end of 2026. Installed capacity across India is projected to reach 1.7 to 2.0 GW by end of 2026, backed by nearly $30 billion in investments.
