India’s Data Centre Capacity to Double by 2027, Grow 5x by 2030: Report

India’s data centre capacity is set for exponential growth, with total capacity expected to double by 2027 and increase fivefold by 2030, according to a new report by Macquarie Equity Research. The country currently operates 1.4 gigawatts (GW) of data centre capacity, with another 1.4 GW under construction and nearly 5 GW in the planning stage.

This expansion is being fuelled by several key factors, including data localisation policies, a supportive regulatory environment, government subsidies, and the rapid adoption of cloud and AI technologies. As per the report, data centres’ share in India’s electricity consumption is projected to rise from 0.8% in 2024 to between 1.9% and 3.2% by 2030. The sector is also expected to attract $30–45 billion in capital expenditure over the next five years, excluding server investments.

Several tech giants have already announced large-scale data centre projects in India. Google plans to invest $15 billion in an AI infrastructure hub in Visakhapatnam with the Adani Group, while Tata Consultancy Services (TCS) will invest $6.5 billion to build a 1 GW network of data centres. Reliance Jio, in collaboration with Meta and Google, has also announced a green AI data centre in Jamnagar, and AWS is committing $13 billion to expand its India cloud capacity.

However, the report stresses the need for a dedicated national data centre policy, noting challenges such as water scarcity in key hubs like Mumbai and Chennai, which together account for over 60% of India’s current capacity.

Source: Business Standard