India's Data Centre Boom: A $22 Billion Vision for 2030

India's data centre capacity is set to skyrocket to 5 GW by 2030, driven by artificial intelligence and a $30 billion investment surge. The sector is transforming with policy support, positioning India as a key digital hub in Asia-Pacific, challenging mature markets like Singapore and Japan.

India's data centre capacity is on the brink of a major expansion, predicted to reach around 5 gigawatts (GW) by 2030, driven by a surge in artificial intelligence adoption and a massive investment pipeline. Currently operating at 1.4-1.6 GW, the country is poised to become a primary digital infrastructure hub in the Asia-Pacific.

A report by Vestian projects the domestic market's valuation to climb from USD 10 billion in 2025 to USD 22 billion by 2030. With over 700 megawatts (MW) under construction and 1.2 GW in the planning stages, the sector expects to add 2-3 GW in the next five to seven years, backed by nearly USD 30 billion in investments by 2026.

Shrinivas Rao, CEO of Vestian, emphasized the sector's potential, citing strong policy support and rising digital demand as key factors. India offers a structural advantage over mature markets such as Singapore and Japan, with lower construction costs and favorable power tariffs attracting significant global interest. Mumbai leads with 49% of the national data centre infrastructure, followed by Chennai and the National Capital Region.

(With inputs from agencies.)