**India’s Data Centre Demand: A Call for Infrastructure Investment by 2030**
India is projected to require an additional 45–50 million square feet of real estate and 40–45 terawatt-hours (TWH) of incremental power for data centres by 2030, driven by the escalating demand for artificial intelligence (AI), according to a recent report by Deloitte. The report, titled “Attracting AI Data Centre Infrastructure Investment in India,” emphasizes the country’s competitive advantages, including cost-effectiveness, a focus on renewable energy, and a strategic geographical position. However, it also highlights the necessity of addressing critical gaps in infrastructure, talent, and policy to establish India as a global AI hub.
Deloitte’s findings indicate that to meet the burgeoning AI demand, India must enhance its data centre capabilities significantly. The report outlines six essential pillars for developing a robust AI ecosystem: real estate, power and utilities, connectivity, compute infrastructure, talent, and policy framework. It advocates for targeted interventions, such as creating a distinct category for data centres within the National Building Code and recognizing them under the Essential Services Maintenance Act to encourage specialized infrastructure development.
To facilitate the rapid deployment of data centres, the report suggests expediting and simplifying the approval processes by establishing data centre facilitation units. Furthermore, it calls for comprehensive policy support, streamlined data localization norms, and the establishment of dedicated data centre zones, which are crucial for bolstering India’s AI infrastructure.
Deloitte also recommends amending data access provisions under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, to align with the operational realities of data centres and exempting them from surveillance scopes under the Telecommunication Act, 2023. Implementing safe harbour rules for data hosting service providers and creating data embassies are seen as pivotal steps to stimulate investment and drive India’s data centre evolution.
However, the report warns that the rapid expansion of data centres will place increased pressure on India’s power grid, necessitating urgent investments to enhance generation capacity, upgrade infrastructure, and better integrate renewable energy sources. Despite notable advancements, challenges remain, including limited fibre optic reach in rural areas, unreliable high-speed internet, and high latency, which hinder the country’s potential in data centre development.
Neha Aggarwal, Partner at Deloitte India, emphasized the need for a greater focus on building high-performance compute infrastructure, scalable power and cooling systems, and efficient networking infrastructure. A reevaluation of the policy framework could position India as a leading destination for AI-powered data centre development in the coming years.
In conclusion, as India gears up to meet the demands of the AI revolution, strategic investments in infrastructure and policy reform will be essential to unlock the full potential of its data centre capabilities.
**FAQ**
**What is the projected demand for data centres in India by 2030?**
India is expected to need an additional 45–50 million square feet of real estate and 40–45 terawatt-hours of incremental power for data centres by 2030 to support the growing demand for AI.
