**India’s Data Centre Industry Poised for Exponential Growth by 2030**
India’s data centre sector is on the verge of significant expansion, with total capacity projected to reach 3 GW by 2030, as highlighted in a recent report. The industry is currently witnessing a surge in annual investments, estimated between USD 1-1.5 billion (approximately ₹12,870 crore), a figure anticipated to double in the coming years, according to Avendus Capital’s report titled “A Multi-Year Growth Proxy on India’s Data Explosion and Localisation Wave.”
As of 2024, India’s data centre capacity is estimated at 1.1 GW. The primary drivers of this growth include increasing data consumption, the rise of artificial intelligence and cloud adoption, and government policies promoting data localisation. Demand is expected to soar to around 6 GW by 2033, while supply is projected to reach only 4.5 GW, resulting in a shortfall of 1.5 GW.
To address this demand, the report suggests that much of it will be fulfilled through large-format, hyperscale-ready infrastructure in major markets, along with edge-ready capacity in Tier 2 and Tier 3 cities to support latency-sensitive workloads. The sector is expected to experience a compound annual growth rate (CAGR) of 25-30%.
The report also notes that state governments are facilitating data centre capacity expansion through subsidised land banks and electricity duty exemptions. While established players like STT GDC and Sify continue to dominate the market, new entrants are preparing to cater to the growing enterprise demand.
For instance, Anant Raj, a Delhi-NCR-based infrastructure and real estate company, has announced a capital expenditure plan of USD 2.1 billion (around ₹18,000 crore) to achieve an operational capacity of 307 MW by 2031-2032, a significant increase from its current IT load of 28 MW in 2025-26.
Amit Sarin, Managing Director of Anant Raj Ltd, stated, “With the advantage of pre-zoned sites, strong government policies, robust power access, and connectivity, we are well-positioned to meet the rising demand for enterprise and hyperscale cloud infrastructure services from both public and private sector clients.”
In conclusion, India’s data centre industry is set for remarkable growth, driven by technological advancements and supportive government initiatives, positioning the country as a key player in the global data landscape.
**FAQ**
**What factors are driving the growth of India’s data centre industry?**
The growth is primarily driven by increasing data consumption, the adoption of AI and cloud technologies, and government policies focused on data localisation.
