By BullScreen Editorial Team 
India’s data centre industry is set for rapid expansion, with total capacity projected to reach around 5 gigawatts (GW) by 2030, up sharply from the current 1.4–1.6 GW, according to a report by Vestian. The growth is being driven by rising artificial intelligence adoption, cloud expansion, and strong investor interest.
The report estimates the market size will more than double from $10 billion in 2025 to $22 billion by 2030, underlining the sector’s strategic importance in India’s digital economy. Around 700 megawatts (MW) is currently under construction, with an additional 1.2 GW in the pipeline, indicating sustained supply growth over the next five to seven years.
Vestian noted that cumulative investments could reach nearly $30 billion by 2026. Foreign institutional investors have already contributed about 80% of the $13–15 billion invested between 2020 and 2024, highlighting strong global confidence in India’s infrastructure story.
Industry dynamics are also evolving with increasing demand from AI workloads and hyperscale cloud providers. Higher rack densities and power requirements are pushing new infrastructure standards, while government incentives such as tax benefits, GST support, and single-window clearances are improving project viability.
India’s cost advantage remains a key differentiator. Data centre construction costs are estimated at $6–7 million per MW, significantly lower than mature markets like Singapore and Japan, supported by cheaper power and labour.
Mumbai continues to dominate with nearly half of the country’s operational capacity, followed by Chennai and NCR. The sector’s growth is further supported by over 1.23 billion telecom users and rising data consumption, reinforcing India’s position as a key digital and AI infrastructure hub.