India’s data centre capacity is projected to grow nearly threefold—from 1.1 GW in 2024 to 3 GW by 2030, according to a new report by Avendus Capital. The growth is being fuelled by rising data consumption, AI and cloud adoption, and an aggressive push for data localisation under national policy frameworks.
Currently, annual investments in India’s data centre ecosystem range from $1 to $1.5 billion, but this figure is expected to double in the coming years as demand accelerates. The Avendus report, titled A Multi-Year Growth Proxy on India’s Data Explosion and Localisation Wave, warns that while demand may reach 6 GW by 2033, projected supply stands at only 4.5 GW, creating a 1.5 GW capacity gap.
Edge and hyperscale models gain traction
To bridge this gap, the market is shifting towards a dual approach: hyperscale-ready infrastructure in Tier 1 cities, and edge-ready capacity in Tier 2 and 3 locations to support low-latency applications. The report forecasts a 25–30% compound annual growth rate (CAGR) for the Indian data centre sector through 2030.
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State governments are playing a pivotal role by offering subsidised land banks and electricity duty exemptions, which have made it easier for providers to scale operations. Key players such as STT GDC and Sify continue to dominate the market, while new entrants are racing to address the growing enterprise and hyperscaler demand.
New investments signal sector confidence
One example is Delhi-NCR-based Anant Raj Ltd, which has announced plans to increase its operational data centre capacity from 28 MW in FY26 to 307 MW by FY32. The company is committing $2.1 billion (₹18,000 crore) in capex, banking on its access to pre-zoned land, government-backed incentives, and robust power and connectivity infrastructure.
As public and private sector organisations accelerate their digital infrastructure rollout, India’s data centre ecosystem is emerging as a critical pillar for AI, cloud, and sovereign digital services. With hyperscalers, global cloud providers, and domestic infrastructure players aligned in their growth trajectories, the coming years are set to reshape India’s position as a digital infrastructure hub for the region.
