India’s Data Center Capacity Set To Triple By 2030 With $25 Billion Boost Led By These Three Key Cities

India's digital infrastructure is witnessing a transformative shift, with the data center (DC) market emerging as a core pillar of the country's digital economy.

As of April 2025, India’s DC capacity has reached 1,263 MW—more than four times its 2018 levels. According to Colliers India, this momentum is far from slowing, with DC capacity projected to exceed 4,500 MW by 2030.

This represents a nearly 3.6X jump in just five years, supported by a surge in cloud computing, AI adoption, and favourable government policies.

Real Estate Footprint to Hit 55 Million Sq Ft
Colliers' latest report, “The Digital Backbone: Data Center Growth Prospects in India,” reveals that this capacity increase will translate into a substantial jump in real estate footprint—from the current 15.9 million sq ft to around 55 million sq ft by 2030 across the top seven markets.

“With a DC capacity of about 1,263 MW across the top seven markets, India’s data center industry has witnessed significant scaling up in the last few years,” said Jatin Shah, Chief Operating Officer, Colliers India. “India is becoming a global DC hotspot, fueled by rapid digitalisation, data localisation norms and strong government support.”

Mumbai Leads the Pack, But New Hubs Are Emerging
Mumbai continues to dominate the data center landscape, accounting for 41% of current capacity. Since 2020, it has added 378 MW, representing 44% of the country’s new DC supply. Chennai and Delhi NCR follow with 27% and 15% of new additions, respectively.

However, the next wave of growth will see significant action beyond these metros. Between 2025 and 2030, cities like Hyderabad and Pune are expected to see exponential expansion. Hyderabad alone is projected to add 1,000–1,200 MW, matching Mumbai’s forecast growth during the same period.

“Relatively smaller growth markets such as Hyderabad, Bengaluru and Pune are likely to see multifold growth in inventory levels,” the report stated. “Hyderabad, specifically, is likely to emerge as a major hub.”

Shift Towards Large-Scale and Hyperscale Facilities
India’s data center infrastructure is not only expanding in volume but also in scale. As of April 2025, large data centers exceeding 20 MW account for 56% of total capacity, up from 42% in 2020. Colliers forecasts that by 2030, DCs over 50 MW will make up nearly two-thirds of the total inventory.

Interestingly, Mumbai contributed about three-fourths of the new supply in the 21-50 MW category, while Chennai took the lead in the >50 MW bracket, accounting for 45% of the new completions.

$25 Billion Investment Opportunity Over the Next 5-6 Years
Fueling this capacity explosion is an expected investment influx of $20-25 billion by 2030. Since 2020 alone, the industry has already attracted $14.7 billion in investments for land acquisition, construction, and other development activities.

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“India’s DC market is likely to mature amidst increasing demand, supportive government policies and the country’s continued commitment towards digital transformation,” said Vimal Nadar, National Director & Head of Research, Colliers India.

He added, “DC investments of about USD 20-25 billion are likely to materialise over the course of the next 5-6 years. Operators & developers will increasingly seek land-banking strategies and expand into growing markets with high data consumption levels.”
 

Green and Energy-Efficient Infrastructure Gaining Ground
Sustainability is also becoming a major priority for DC operators. Green-certified and energy-efficient infrastructure is on the rise, with the green penetration rate expected to grow from 25% currently to 30-40% by 2030. This shift is aligned with the increasing demand for high-density racks and advanced computing infrastructure, particularly in AI-driven and real-time data processing environments.

With India set to become a global data center powerhouse, the next five years will be crucial in shaping the country's digital economy. From increased investments to emerging Tier II and III markets and a focus on sustainability, India’s data center ecosystem is evolving rapidly, and the world is watching.