Archive · 27 Sep 2025
India's Data Center Capacity to Double by FY2028
India's data centers, which store and process digital information, are growing rapidly.
They're expected to double their capacity by 2028 with huge investments.
Mumbai leads the way, with the most data centers.
The expansion is driven by rising data usage and government incentives.
Data centers are also starting to use more green energy.
However, increasing competition might impact profits.
India's data center capacity is projected to double by FY2028.
Rs 90,000 crore will be invested in the next three years.
Total investment commitments could reach Rs 2.3-2.5 lakh crore.
Mumbai accounts for over 50% of India's data center capacity.
Operators are increasing the use of renewable energy.
- Who
- India's data center industry
- What
- Is set for major expansion
- When
- By FY2028
- Where
- India
- Why
- Due to increasing data consumption and government support
Profitability Concerns
Growth and Investment
Competition
Profitability Concerns
Intensifying competition squeezing pricing flexibility.
Growth and Investment
Strong capacity growth is expected
Margins
Profitability Concerns
Competition could weigh on profitability and returns.
Growth and Investment
Companies have managed credit profiles with long-term funding.
- Projected Capacity by FY2028
- 2,400-2,500 MW
- Current Capacity (FY2025)
- ~1,250 MW
- Investment Over 3 Years
- Rs 90,000 crore
- Total Investment Commitment
- Rs 2.3-2.5 lakh crore
- Leading City
- Mumbai (50% of operational capacity)
- Green Power Share (FY2028)
- 30-35%