The value of India’s data centre market is expected to reach US$22 billion by 2030, reports
IANS, a partner of TV BRICS, citing a report by a global analytics company. By comparison, the market is estimated at US$10 billion in 2025.
As noted in the report, the country is emerging as a strategic hub in the Asia-Pacific region (APAC). Market growth is driven by the accelerated digital transformation across various industries, the expansion of the internet user base, and increasing investment from hyperscale data centre operators.
“India’s data centre sector is rapidly transforming on the back of strong policy support and rising digital demand. […] India has a huge upside potential to lead in AI infrastructure,” said the head of the company’s analytics division in India.
According to forecasts, the installed capacity of Indian data centres will reach 1.7–2.0 gigawatts by the end of 2026. By 2030, this figure is expected to increase to 4–5 gigawatts.
Investment activity in the sector remains high. Between 2020 and 2024, the industry attracted US$13–15 billion. Nearly 80 per cent of this total came from foreign institutional investors. The overall value of announced projects for the next five years amounts to US$60–70 billion.
The construction of data centres in India costs US$6–7 million per megawatt, which is significantly lower than in other countries across the Asia-Pacific region.
Geographically, Mumbai remains the largest hub. Chennai serves as a global gateway for data transmission via submarine cables. Secondary hubs are emerging in Hyderabad, Bengaluru, and Pune, driven by well-developed IT ecosystems, land availability, and competitive operating costs.
In cities such as Ahmedabad, Kochi, Jaipur, and Visakhapatnam, operational capacity is estimated to exceed 100 megawatts by the end of 2026, compared with the current 60–80 megawatts. These cities are gaining popularity due to land availability, improvements in digital infrastructure, and support from local authorities.