Archive · 21 Jul 2026
India's data centre capacity grows 59% annually
India's data centre market is growing very fast.
In the first half of 2026, the country added 258 MW of new data centre capacity, which is a 59% increase compared to the same period last year.
This brings the total operational capacity to 1.8 GW.
Most of this capacity is used by big companies called hyperscalers, but there are also facilities for smaller businesses and edge data centres.
The market is expected to grow even more, reaching over 7 GW by 2030.
However, there are some challenges, like finding enough power and land to build new data centres.
Despite these challenges, the market is optimistic because of strong demand and new opportunities, especially for Neo-Cloud service providers.
India's data centre capacity grew by 59% annually to 258 MW IT in the first half of 2026.
Total operational stock reached 1.8 GW IT.
Hyperscalers account for 36% of the operational stock, with enterprise-focused facilities at 8% and edge data centres at 1%.
The market is projected to reach over 7 GW IT by 2030.
Challenges include the availability of power and suitable land parcels for data centre development.
- Who
- Savills India, Hyperscalers, Enterprise-focused facilities, Edge data centres
- What
- India's data centre capacity grew by 59% annually to 258 MW IT in the first half of 2026.
- When
- January to June 2026
- Where
- India
- Why
- Driven by demand from hyperscalers and large enterprises, and the market's strategic advantages for Neo-Cloud service providers.
Optimistic View
Challenges Ahead
Market Growth
Optimistic View
The Indian data centre market is experiencing significant growth, with a 59% increase in capacity additions in the first half of 2026.
Challenges Ahead
Despite the growth, the market faces challenges such as the availability of power and suitable land parcels for data centre development.
Demand Drivers
Optimistic View
Demand from hyperscalers and large enterprises remains strong, driving market expansion.
Challenges Ahead
The broader colocation market has seen moderate demand due to increasing enterprise adoption of cloud services.
Future Projections
Optimistic View
The market is projected to nearly fourfold and reach over 7 GW IT by 2030.
Challenges Ahead
Hyperscalers and data centre operators may need to explore new clusters for future expansion due to current challenges.
- Annual Growth
- 59%
- Fresh Capacity Additions (Jan-Jun 2026)
- 258 MW IT
- Total Operational Stock
- 1.8 GW IT
- Hyperscalers' Share
- 36%
- Enterprise-Focused Facilities' Share
- 8%
- Edge Data Centres' Share
- 1%
- Projected Capacity by 2030
- Over 7 GW IT
- Key Challenge
- Availability of power and suitable land parcels