Archive · 27 Aug 2026
India’s Data Centre Capacity Set to Triple by 2030
India is expected to build many more data centres by 2030.
Data centres are large facilities that store and process digital information.
Their total capacity could grow from about 1.65 gigawatts in 2025 to 5–6 gigawatts.
This growth is being pushed by more internet use, artificial-intelligence work and rules requiring some data to be stored locally.
Building facilities in India is also relatively inexpensive, according to the report.
The expansion will need much more electricity from the national grid.
Mumbai currently has the largest share of capacity, followed by the combined Mumbai and Chennai market.
Some AI work may move to places such as Hyderabad, the Andhra coast, Gujarat and Rajasthan because they may offer more power and land.
India’s data-centre capacity is projected to rise from about 1.65 GW in 2025 to 5–6 GW by 2030.
Redseer Strategy Consultants estimates the expansion would require annual growth of 27–32% across the decade from 2020.
The 2030 capacity target would require about 7–9 GW of grid draw, with roughly 5 GW of additional grid capacity still needed.
Mumbai holds about half of India’s installed capacity, while Mumbai and Chennai together account for about 66%.
Hyderabad, the Andhra coast, Gujarat and Rajasthan could gain as AI training and batch workloads seek stronger power and land availability.
- Who
- Redseer Strategy Consultants provided the estimates; India’s data-centre industry is expected to expand.
- What
- Installed data-centre capacity is projected to nearly triple to 5–6 GW by 2030 from about 1.65 GW in 2025.
- When
- The current estimate is for calendar year 2025, with the projection covering calendar year 2030.
- Where
- India, with Mumbai and Chennai currently dominant and Hyderabad, the Andhra coast, Gujarat and Rajasthan identified as potential growth locations.
- Why
- Growth is being driven by local data-storage requirements, greater data consumption, artificial-intelligence workloads and relatively low construction costs.
- Current installed capacity
- About 1.65 GW in calendar year 2025
- Projected 2030 capacity
- 5–6 GW
- Estimated growth rate
- 27–32% CAGR across the decade from calendar year 2020
- Projected 2030 grid draw
- Approximately 7–9 GW
- Additional grid capacity needed
- Around 5 GW, compared with about 2.7 GW currently
- Current geographic concentration
- Mumbai has about 50% of installed capacity; Mumbai and Chennai together have about 66%
- Estimated setup cost
- Around USD 8 million per megawatt