India’s Data Center Capacity to Cross 4,500 MW by 2030 – Colliers Report

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India’s data center capacity across the top seven cities is projected to exceed 4,500 megawatts by 2030. This represents a massive expansion. It could attract between $20 billion and $25 billion in investments. Additionally, it could create a real estate footprint of nearly 55 million square feet, according to a Colliers report.

India DC market capacity and real estate footprint

The growth is driven by several key factors. These include enhanced global connectivity through submarine cables and the availability of cost-effective land. There is also a reliable power supply, progressive government policies, and escalating digital consumption across the country. Colliers noted that major data center operators are making long-term commitments. They are scaling their presence in Tier II and Tier III cities. This is done to capitalize on this momentum.

By April 2025, India’s data center industry had reached a capacity of around 1,263 MW. This was achieved across its top seven markets. Mumbai continued to lead the sector. It held a 41% share of the total capacity. Chennai followed with 23%, and Delhi-NCR held 14%. The combined real estate footprint across these markets reached 16 million square feet. This represents a threefold increase over the past six to seven years.

“Mumbai will remain at the forefront, but cities like Hyderabad, Bengaluru, and Pune are experiencing exponential growth,” the report stated. “Hyderabad, in particular, is emerging as a strong contender to join the ranks of Mumbai, Chennai, and Delhi-NCR as a key data center destination.”

Supply side trends in India’s DC market 

India has added 859 MW of new capacity across its top data center markets since the beginning of 2020. Mumbai alone accounted for 44% of that expansion, with Chennai and Delhi-NCR jointly responsible for 42% of the additions.

The report emphasized a shift towards larger hyperscale facilities, with a significant rise in data centers sized above 20 MW. In 2020, such facilities represented 42% of the total market; by April 2025, their share had climbed to 56%. Among the 21-50 MW capacity additions, Mumbai was the dominant contributor. It accounted for nearly 75% of new supply in this segment. In the above 50 MW category, Chennai led with 45% of the new completions since 2020.

Looking ahead, Colliers projects that by 2030, data centers will have capacities exceeding 50 MW. They will comprise nearly two-thirds of the market’s inventory. This reflects increased demand for hyperscale infrastructure.

Since 2020, the data center sector in India has attracted around $14.7 billion in investments, focused largely on land acquisition, construction, and project development. Cloud adoption is rising. Artificial intelligence integration is increasing. Additionally, there are growing data localization needs. Colliers anticipates an additional $20 billion to $25 billion in investment over the next five to six years.

“Operators and developers will increasingly pursue land-banking strategies and expand into high-consumption markets,” said Vimal Nadar, national director and head of research at Colliers India. “There will also be a stronger focus on building energy-efficient and green-certified facilities as the industry evolves.”

Currently, green-certified data centers represent around 25% of the market. That share is expected to grow significantly by 2030. It may reach between 30% and 40%. Sustainability will become a more prominent factor in project development and operations.

“India’s strategic advantages, including the availability of suitable land, reliable power supply, and a skilled talent pool, reinforce its position as one of the preferred destinations for data centers in the Asia-Pacific region,” said Jatin Shah, chief operating officer at Colliers India. “The rise of edge data centers is also notable, driven by demand for lower latency, real-time processing, improved application performance, and business agility.”

Colliers concluded that India’s data center industry is on a high-growth trajectory. It is supported by long-term trends in digitalization, regulatory frameworks, and infrastructure support. These factors will shape the country’s emergence as a global data center hub by the end of the decade.

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