India’s Data Centre Sector Is Growing Fast: 3,860 MW of New Capacity Expected by 2030

India’s data centre sector is growing at a phenomenal pace, with projections from the India Brand Equity Foundation (IBEF) indicating that the country’s data centre capacity could reach an additional 3,860 MW by 2030. India’s top seven data centre markets currently account for around 1,789 MW of operational capacity as of 2026.

Another 509 MW of capacity is currently under construction, while approximately 3,351 MW is in the planning stage. India currently has 147 data centres across the country, operated by 33 different entities.

The data centre vacancy rate stood at 14.9% in the first half of 2026. Mumbai is currently India’s largest data centre market, with 890 MW of operational capacity. The city is expected to add another 1,726 MW of capacity.

Other important data centre markets include Hyderabad, Chennai, Delhi NCR, Pune, Bengaluru and Kolkata, highlighting the expansion of data centre infrastructure into more Indian cities.

By 2030, India is expected to require an investment of around ₹2.84 lakh crore, or US$29.9 billion, to develop its data centre capacity. This growth is being driven by cloud computing, the increasing use of artificial intelligence (AI), the expansion of digital services and the growing volume of digital data.

A report by Cushman & Wakefield states that India could add nearly 3.9 GW of new data centre capacity. This additional capacity will help support the country’s growing demand for AI, cloud services and digital technologies.

Overall, India is entering a major phase of data centre expansion, with increasing capacity, rising investment and more cities emerging as important data centre locations.

The sector is gaining strong momentum, with data centre absorption reaching around 420 MW in 2025. Demand is being driven by both hyperscale operators and enterprises.