Posted by Mumbai: India’s data centre sector is expanding rapidly, with its installed data centre capacity projected to reach 6.5 GW by 2030, reveals a new report.
The new report titled, “Rubix Industry Insights: India’s Data Centre Sector” from Rubix Data Sciences, finds that India’s installed data centre capacity is growing from 1.5 GW in 2025 to a projected 6.5 GW by 2030. The projected growth is more than four times the current levels, with additions in the past year alone outpacing the previous three combined, as per the report.
India added 387 MW of IT capacity in 2025, more than double the 191 MW added in 2024, a 103% year-on-year increase. As of January 2026, India had 271 data centres, with Mumbai, Hyderabad, Delhi NCR, Bengaluru, and Chennai together accounting for nearly 65% of the total. In June 2025, India ranked seventh globally in terms of the number of facilities.
The report identifies cloud adoption, AI-readiness, and digital drivers such as 5G, e-commerce, UPI, and OTT as core demand drivers, alongside India’s cost advantage, with construction costs estimated to be 30% to 40% lower than in China and the US.
The report estimates the sector’s current investment pipeline, spanning projects under development and formally announced, at around $90 billion, roughly six times the $13–15 billion invested between 2020 and 2024.
Amazon Web Services ($35 billion), Microsoft ($17.5 billion), and Google ($15 billion), together account for approximately $67.5 billion in commitments to India.
Indian government has separately projected that AI-driven digital infrastructure, including data centres, could catalyse up to $200 billion in investments in the years ahead.
The report also flags the operational challenges accompanying this growth. India’s data centres are estimated to consume around 150 billion litres of water annually, projected to rise to nearly 359 billion litres by 2030, with more than half of the facilities located in water-stressed regions.
Electricity demand from data centres is expected to rise from around 1 GW currently to 13.56 GW by 2031–32, as per India’s power ministry, even as the sector works to decarbonise operations in support of India’s 2070 net-zero target.
“India’s data centre industry has moved past its early growth phase and is now in the middle of a large-scale, AI-driven investment cycle, with the current pipeline significantly outpacing historical investments,” commented Tushar Bhaskar, President – Rubix Data Sciences.
“As demand from hyperscalers, AI workloads, and digital enterprises accelerates, the next test for the industry will be execution. Long-term leadership in this sector will depend on how effectively stakeholders address structural constraints around power, water, and sustainability, while building resilient, energy-efficient, and AI-ready infrastructure,” said Bhaskar.
“The coming phase development will be defined as much by the ability to deliver integrated, future ready digital infrastructure ecosystems as by investment size,” he added.
Despite generating nearly 20% of the world’s data, India currently accounts for only around 3% to 4% of global data centre capacity, the report notes, leaving substantial headroom for growth.
With continued hyperscale investment, supportive government policy and an expanding renewable energy base, the report concludes that India is well positioned to emerge as one of the world’s leading hubs for hyperscale and colocation data centre development.