Hyperscalers and conglomerates race as India’s data centre boom accelerates

India’s data centre market is on course to more than double from $10 billion in 2025 to $22 billion by 2030, according to Vestian, as a confluence of AI adoption, cloud expansion, 5G rollout and surging digital consumption reshapes the country’s infrastructure landscape.

The country currently operates 164 data centres with an installed capacity of 1.4–1.6 GW — a fourfold rise from 0.375 GW in 2020. With over 700 MW under construction and a further 1–1.2 GW in the pipeline, total capacity is projected to reach 4–5 GW by 2030. Globally, data centre capacity is expected to exceed 100 GW by the end of the decade, driven significantly by AI workloads that demand 10–100 times the computing power of traditional applications.

Hyperscalers — AWS, Microsoft, Google and Oracle — already account for more than half of India’s installed data centre capacity, with domestic conglomerates Reliance and Adani aggressively entering the space. The sector attracted $13–15 billion between 2020 and 2024, with foreign investors contributing nearly 80% of inflows. Announced investments for the next five years stand at $60–70 billion, largely from hyperscalers and joint ventures.

India’s cost advantage is a key draw. Construction costs of $6–7 million per MW are significantly below Singapore and Japan, making the country an increasingly attractive large-scale deployment hub. Policy support — including tax incentives, GST benefits and single-window clearances — is further accelerating momentum.

Mumbai leads installed capacity with a 49% share, followed by Chennai at 18% and NCR at 11%, driven by proximity to sub-sea cable landing stations. Tier-II cities including Ahmedabad, Kochi, and Visakhapatnam are emerging as the next frontier, with capacity in these markets expected to cross 100 MW by 2026.

CT Bureau