India’s data centre capacity set for nearly 10x growth by 2030

New Delhi: India’s data centre capacity is projected to expand nearly tenfold by the end of this decade, driven primarily by the rapid growth of artificial intelligence workloads, according to a white paper released by the Office of the Principal Scientific Adviser to the Government of India.

The report estimates that India’s installed data centre capacity, currently at around 960 megawatts (MW), is expected to rise to 9.2 gigawatts (GW) by 2030, marking one of the fastest infrastructure expansions globally in response to AI-driven compute demand.

Despite hosting nearly 20% of the world’s data, India currently accounts for only 3% of global data centre capacity, highlighting a significant infrastructure gap between data generation and data processing capabilities. 

The white paper positions this imbalance as a key constraint on India’s ability to scale domestic AI innovation and reduce reliance on foreign cloud providers.

AI workloads reshape infrastructure priorities

The white paper identifies AI as the primary force reshaping data centre demand. Unlike traditional cloud computing, AI systems require specialised infrastructure such as high-density GPU clusters, advanced cooling systems, and uninterrupted power supply to train and deploy large-scale models.

Data centres are described as the “foundational hubs” of AI infrastructure, supporting both data storage and high-performance computation. As AI adoption increases across sectors, from language models to scientific research, the demand for compute-intensive infrastructure is expected to grow sharply.

India’s expansion plans are also tied to the government’s broader effort to democratise access to AI infrastructure, ensuring that compute, datasets, and models are not restricted to a few global firms or urban hubs.

Mumbai leads, but capacity remains concentrated

The report provides a city-wise breakdown of India’s existing data center footprint, showing a high level of geographic concentration.

The Mumbai-Navi Mumbai region accounts for over 25% of India’s live data center capacity, supported by dense subsea cable connectivity and favorable policy frameworks. Bengaluru and Hyderabad together hold around 22% each, while Chennai accounts for 13%. The Delhi NCR region contributes roughly 14%, followed by Pune at 6% and Kolkata at 3%.

While these hubs continue to dominate, the paper notes emerging efforts to expand infrastructure beyond traditional metros, including the development of edge data centres in cities such as Jaipur, Coimbatore, and Chandigarh. These facilities aim to bring compute closer to end users, reduce latency, and support regional AI use cases.

Power and sustainability emerge as critical challenges

As data centre capacity scales, the white paper flags energy consumption as a growing concern. Data centres currently account for about 0.5% of India’s total electricity consumption, a figure projected to rise to nearly 3% by 2030 as AI workloads expand.

The report estimates that scaling AI data centres will require an additional 45–50 million square feet of real estate by the end of the decade, alongside substantial investments in power and cooling infrastructure.

Cooling, in particular, is identified as a fast-growing sub-sector. India’s data centre cooling market, valued at USD 2.1 billion in 2024, is projected to grow to USD 7.13 billion by 2030, reflecting the higher thermal demands of AI-focused facilities.

Several state governments have begun linking data centre incentives to sustainability benchmarks. Maharashtra, Tamil Nadu, and Karnataka have introduced policies mandating at least 30% renewable energy usage for data centres seeking incentives, signalling a policy shift toward greener AI infrastructure.

Government-backed compute expansion supports capacity growth

Alongside private investment, the white paper highlights government-led initiatives that are expected to increase AI-ready capacity.

Under the IndiaAI Mission, a national compute ecosystem is being expanded through a government-supported cloud infrastructure. The IndiaAI Compute Portal currently operates across 38,000 GPUs and 1,050 TPUs, offering access at subsidised rates of under Rs 100 per hour, compared to global rates exceeding Rs 200 per hour.

The report also links data centre expansion to India’s broader semiconductor and supercomputing strategies. The Rs 76,000 crore India Semiconductor Mission is positioned as foundational to long-term AI infrastructure development, while the National Supercomputing Mission has already deployed over 40 petaflops of computing capacity across academic and research institutions.

Infrastructure growth tied to AI democratisation goals

The white paper frames the rapid scale-up of data centre capacity not just as an infrastructure challenge, but as a policy necessity. Concentration of AI infrastructure in a few global firms and locations is identified as a barrier to equitable innovation.

By expanding domestic data centre capacity and integrating it with Digital Public Infrastructure frameworks, the government aims to lower entry barriers for startups, researchers, and smaller institutions that lack access to on-premise compute resources.

However, the report also cautions that infrastructure growth must be carefully sequenced, with strong governance, interoperability standards, and sustainability planning to avoid new bottlenecks or exclusion risks.