India’s Data Centre Market Seen Doubling to US$ 22 Billion by 2030

India’s data centre industry is on course for rapid expansion, with the market expected to grow from about US$ 10 billion in 2025 to US$ 22 billion by 2030, driven by surging demand for cloud computing, artificial intelligence and other data-intensive digital services. According to IBEF, the sector’s momentum reflects the broader rise of India’s digital economy and the country’s growing importance as a global data infrastructure destination.

The report said the industry attracted an estimated US$ 13–15 billion in investments between 2020 and 2024, with foreign institutional investors contributing nearly 80% of total capital inflows. That trend is expected to continue, with announced projects worth US$ 60–70 billion lined up over the next five years, largely led by hyperscalers and joint ventures seeking to expand capacity in India.

Demand fundamentals remain strong. India’s expanding internet base, rising telecom usage and accelerating enterprise cloud adoption are all pushing up the need for large-scale storage and processing infrastructure. IBEF noted that average monthly wireless data consumption has crossed 25 GB per user, underlining the scale of the country’s digital traffic growth.

On the supply side, installed data centre capacity in India is projected to reach 1.7–2.0 GW by 2026, backed by about US$ 30 billion in investments, before scaling further to 4–5 GW by 2030. India’s relative cost advantage is also drawing attention, with construction costs estimated at US$ 6–7 million per MW, lower than those in several mature Asia-Pacific markets.

Mumbai continues to dominate as the country’s leading data centre hub, while Chennai, Hyderabad, Bengaluru and Pune are emerging as major secondary markets. Together, these cities are expected to play a central role in supporting India’s next phase of AI, cloud and digital infrastructure growth.

Sources:
https://www.ibef.org/news/india-s-data-centre-market-projected-to-reach-us-22-billion-by-2030