According to a report by Savills India, the data centre market in India is anticipated to grow at a compound annual growth rate (CAGR) of 21 per cent from 2024 to 2030, reaching an IT capacity of 3,400 MW by that time.
The report indicated that India is quickly becoming a global data centre hub, with an expected demand of over 450 megawatts (MW) of IT capacity across major cities by 2025. Meanwhile, supply additions are projected to reach 600 MW IT.
As per the report, in 2024, India absorbed 407 MW of IT capacity and added 191 MW across key cities. The increasing demand for data centres is driven by factors such as the growing adoption of cloud computing, the expansion of big data, the Internet of Things (IoT), artificial intelligence (AI), and the rapid growth of e-commerce and digital transformation initiatives.
This demand is particularly fuelled by hyperscalers and sectors like banking, financial services, insurance (BFSI), IT, ITeS, and other service industries that rely heavily on data centre operators for colocation and related services.
Further, the report added that, Mumbai led the absorption market with 53 per cent of total absorption, followed by Hyderabad at 14 per cent, and Chennai and Pune each contributing 10 per cent.
The report also noted a surge in land transactions for data centres across key cities due to rising demand and expansions by operators and hyperscalers. In 2024 alone, over 200 acres of land were acquired in Mumbai, Hyderabad, Pune, Chennai, and Bengaluru. The supply and absorption were mainly concentrated in Mumbai, Chennai, Hyderabad, and Pune.
