New Delhi, Jan 24: India’s remarkable transformation into a global data centre hub reflects its stride toward becoming a digitally empowered nation. With an estimated demand for over 450 MW IT capacity across major cities in 2025 and an anticipated supply addition of 600 MW IT capacity, the country is positioning itself as a formidable force in the global digital economy, according to a report by Savills India, a leading real estate advisory firm.
The data centre market in India is expected to grow at an impressive compound annual growth rate (CAGR) of 21 percent between 2024 and 2030, achieving a projected IT capacity of 3,400 MW. This growth underscores the nation’s commitment to becoming a robust digital infrastructure provider to meet the demands of a data-driven world.
The ongoing digital transformation is driven by a surge in cloud computing, the expansion of technologies like Big Data, Artificial Intelligence (AI), and the Internet of Things (IoT), and the meteoric rise of e-commerce platforms. These factors, coupled with the rollout of 5G and increasing mobile application usage, are cementing India’s status as a global technology leader.
In 2024, India witnessed a significant absorption of 407 MW IT capacity alongside the addition of 191 MW IT capacity across key cities. Mumbai emerged as the frontrunner, accounting for 53 percent of the total absorption, followed by Hyderabad (14 percent), and Chennai and Pune at 10 percent each.
This expansion is further bolstered by hyperscalers, the BFSI (Banking, Financial Services, and Insurance) sector, IT/ITeS industries, and service sectors, which rely heavily on robust data centre operations for colocation and allied services.
The government’s push for technological development and the private sector’s growing investments have also led to a surge in land acquisitions for data centre facilities. In 2024 alone, over 200 acres of land were acquired across Mumbai, Hyderabad, Pune, Chennai, and Bengaluru to support the burgeoning demand.
Notably, Tier-II and Tier-III cities such as Bhubaneswar, Patna, Lucknow, Jaipur, Kochi, Vizag, Coimbatore, Madurai, Raipur, and Hubli are becoming hubs for edge data centres, driven by the increasing penetration of 5G and the rise in localized data requirements. Meanwhile, Tier-I cities like Mumbai, Chennai, and Hyderabad continue to dominate the landscape, with India’s data centre stock projected to reach 3,400 MW IT by 2030 as reported by IANS.
“The increasing penetration of 5G and the rise in mobile application usage are driving demand for edge data centres in Tier-II and Tier-III cities. Meanwhile, dominant Tier-I cities continue to grow, and by 2030, we expect data centre stock to reach 3,400 MW IT across major cities,” said Srihari Srinivasan, Director and Lead Data Centre Services, Savills India.
With an unwavering focus on digital innovation and infrastructure expansion, India is not just fulfilling its domestic data demands but also laying the foundation for becoming a global digital superpower. This revolution marks a new chapter in the nation’s journey toward developed nation status in a digitally integrated world.
