India’s data center sector is expanding rapidly, with current capacity at around 1.3 GW and projections to reach over 4.5 GW by 2030, driven by AI, cloud computing, and digital economy goals. Mumbai leads as the primary hub with 41-52% of live capacity, followed by Chennai at 23% and Delhi NCR at 14%. This growth positions data centers in India as critical infrastructure for businesses handling massive data volumes from 5G rollout and e-commerce surges.
Current Capacity and Market Size
Data centers in India have surpassed 1 GW in installed IT load, with the sector valued at billions and expected to add 2.9 GW more by 2030. As of mid-2025, IT load stands at 1.3-1.4 GW, fueled by hyperscalers like AWS, Google, and Microsoft alongside local players such as Yotta, NTT, and Sify. The market’s under-penetration—India generates 20% of global data but holds only 3% of capacity—signals huge potential for data centers in India to scale.
Key hubs concentrate supply: western ports of Mumbai and Chennai host nearly two-thirds of power, while emerging sites like Hyderabad, Pune, and Bengaluru prepare for 300 MW+ additions each. Investments from Reliance (aiming for 3 GW total) and others underscore this momentum.
Major Drivers Behind Expansion
AI workloads and sovereign cloud mandates propel demand at double-digit rates toward a $1 trillion digital economy. Mobile broadband, 5G, and data localization policies boost needs, with data consumption projected to exceed 25 exabytes monthly by 2025. Government initiatives like Digital India and state policies, such as Madhya Pradesh’s Global Capacity Centers Policy, attract multinational investments.
Power demand could grow fivefold to 57 TWh by 2030, raising data centers’ electricity share to 2.6%. These factors make data centers in India essential for national security, internet infrastructure, and economic output, with 138 facilities operational as of recent counts.
Upcoming Projects and Investments
Reliance announced a 1 GW project in early 2025 to hit 3 GW capacity, while CtrlS builds a 12 MW AI-ready facility in Bhopal’s Badwai IT Park for INR 500 crores. AdaniConneX partners with Google on an AI data center campus, and Sify develops an AI-Hub, expanding in Navi Mumbai, Hyderabad, and Noida.
Google plans an 8-storey, 381,000 sq ft center in Navi Mumbai by 2025 (INR 1,144 crore investment), and Microsoft eyes Mumbai builds. CtrlS targets 25 data centers by 2024-25 from eight in 2023, with over $2 billion from global tech firms enhancing footprints. These projects, adding 681 MW by late 2024, double capacity to 1,318 MW across 7.8 million sq ft.
Regional Distribution and Future Hubs
| City/Region | Current Share | Projected Pipeline |
| Mumbai | 41-52% | 1-1.2 GW by 2030 |
| Chennai | 21-23% | Major western port hub |
| Delhi NCR | 14% | Steady growth |
| Hyderabad | Emerging | Matches Mumbai’s 1-1.2 GW |
| Pune/Bengaluru | Emerging | 300 MW+ each |
This table highlights concentration in metros, with diversification into tier-2 cities.
Challenges and Strategic Outlook
While growth surges, challenges include power demands tripling data centers’ grid share and need for 100+ new facilities by 2025 from localization rules. Investments and policies mitigate these, positioning India as a global hub with capacity doubling to 2 GW by 2026.
Data centers in India support cloud adoption and AI, vital for enterprises in tech, finance, and e-commerce. For businesses seeking reliable infrastructure, exploring colocation or hyperscale options in these hubs ensures scalability.