India’s data centre (DC) industry is set for an explosive expansion, with capacity across the top seven cities projected to exceed 4,500 MW by 2030, up from 1,263 MW as of April 2025.

This growth, highlighted in Colliers’ recent report “The Digital Backbone”, is expected to drive real estate demand to 55 million sq. ft. over the next five to six years. Key enablers include global connectivity via submarine cables, affordable land and power, favourable government policies, and increasing digitalisation. Large hyperscale DCs are driving this expansion. 

Mumbai accounted for 44 percent of the 859 MW added since 2020, while Chennai led completions in the >50 MW segment. Between 2025–2030, Tier I cities will see 3,000–3,700 MW in new supply, with smaller markets like Hyderabad, Bengaluru, and Pune emerging as critical hubs for future investments.

Since the beginning of 2020, the sector has attracted investments amounting to USD 14.7 billion, primarily directed towards land acquisition, project construction, and infrastructure development. Looking ahead, with the accelerating adoption of cloud computing and Artificial Intelligence (AI) across the country, the DC industry is projected to draw further investments in the range of USD 20–25 billion over the next five to six years.