India’s installed data centre capacity has grown from about 375 megawatts in 2020 to around 1.5 gigawatts (GW) in 2025 and is projected to reach 6.5 GW by 2030, more than four times current levels, a report said on Wednesday.
The report from Rubix Data Sciences said capacity additions accelerated sharply, with India adding 387 megawatts of IT capacity in 2025, marking a 103 per cent year-on-year increase from the 191 megawatts added in 2024.
India ranked seventh globally by number of data centres in June 2025. As of January 2026, 271 facilities in Mumbai, Hyderabad, Delhi NCR, Bengaluru, and Chennai, together accounted for nearly 65 per cent of the total, the report added.
The sector’s investment pipeline currently stands at around $90 billion, about six times the $13–15 billion invested between 2020 and 2024, driven by commitments from Amazon Web Services, Microsoft and Google.
The government has projected that AI-driven digital infrastructure, including data centres, could catalyse up to $200 billion in investment in the years ahead.
Water and power availability are emerging as critical constraints, with data centre electricity demand projected to rise from around 1 GW today to 13.56 GW by 2031–32.
States including Gujarat and Maharashtra have introduced dedicated policies to extend data centre growth beyond traditional metro hubs.
The data centre industry is becoming a key indicator of India’s digital and economic momentum, with industry trends having implications across technology, real estate, power and energy, finance, policy, and sustainability, the report noted.
Data centres emerged as the second-largest recipient of institutional investments in India’s real estate sector, accounting for 40 per cent of Q2 2026 investments, another report said.
The sector’s growing share reflects increasing investor interest in digital infrastructure assets, supported by rising demand driven by rapid AI adoption, cloud expansion and data localisation requirements.
