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January 8, 2026 5:05 PM IST

India | data centre

India’s data centre capacity more than doubled in 2025

India recorded a sharp rise in data centre capacity additions in 2025, with new supply more than doubling to 387 MW IT compared to 191 MW IT added in 2024, reflecting a year-on-year growth of 103 per cent, according to a report released on Thursday.

On the demand side, data centre absorption increased to 427 MW IT in 2025 from 407 MW IT in the previous year, marking a 5 per cent annual rise. Mumbai and Chennai emerged as the leading markets, together accounting for nearly 70 per cent of total absorption, driven largely by hyperscale operators amid rising cloud adoption, artificial intelligence workloads, the rollout of 5G services, and growing Internet of Things (IoT) usage.

The report projects India’s data centre market to triple to over 4 GW IT capacity by 2030, expanding at a compound annual growth rate (CAGR) of 23 per cent.

“MW IT capacity” refers to the electrical power, measured in megawatts, that a data centre facility can support for its IT infrastructure.

The surge in capacity additions has pushed India’s operational data centre stock to 1,520 MW IT, representing a 34 per cent increase over the previous year. Mumbai accounted for the largest share of operational supply at 34 per cent, followed by Delhi-NCR with 20 per cent and Chennai with 19 per cent.

Hyperscale data centres continue to dominate market growth, supported by global hyperscalers, domestic cloud service providers, and institutional investors. At the same time, enterprise colocation remains a steady source of demand, complemented by the emergence of edge data centres in Tier 2 and Tier 3 cities.

Emerging markets such as Visakhapatnam, Kolkata, and Hyderabad are also gaining traction. Kolkata is projected to grow at a CAGR of 48 per cent, while Hyderabad is expected to expand at 44 per cent, supported by favourable policy frameworks, cost advantages, undersea cable connectivity, and increasing low-latency requirements linked to 5G and IoT applications.

“With data centre absorption estimated at around 430 MW in 2025, driven by both enterprise and hyperscale demand, India’s digital infrastructure growth is gaining strong momentum,” said Srihari Srinivasan, Director and Lead, Data Centre Services at Savills India. He noted that rising cloud adoption by enterprises is accelerating demand from both global hyperscalers and domestic cloud players, while emerging locations such as Visakhapatnam are strengthening India’s appeal as a data centre destination.

Beyond major metropolitan regions, the expansion of 5G networks and increasing consumption of mobile streaming and digital services are driving hyperscale demand across Tier 2 cities to address local data processing and latency requirements. These trends further reinforce India’s position as a fast-emerging global hub for scalable, long-term data centre investments.

— IANS

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Last updated on: 9th January 2026

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