India’s Data Centre Market to Double, Crossing $22 Billion by 2030: Vestian

Why It Matters

The market’s rapid expansion positions India as a strategic AI and cloud hub in Asia‑Pacific, offering investors lower construction costs and a large, growing digital economy. This growth will reshape global data‑centre capacity allocation and accelerate technology adoption across the region.

Key Takeaways

• Market to reach $22 bn by 2030, more than double 2025 size
• 5G rollout pushes average data use over 25 GB per user monthly
• Construction cost $6‑7 m per MW, cheaper than Singapore or Japan
• Tier‑II cities like Ahmedabad target 100 MW capacity by 2026
• Foreign investors provide ~80% of $13‑15 bn capital inflow 2020‑24

Pulse Analysis

India’s data‑centre boom reflects a convergence of policy, demand and cost advantage. The government’s single‑window clearances, 20‑year tax holidays and GST rebates create a predictable environment that lures hyperscale operators. Coupled with a burgeoning internet user base—now exceeding 800 million—and 5G‑enabled data consumption surpassing 25 GB per subscriber, the market is primed for massive capacity upgrades. These dynamics not only fuel domestic cloud growth but also position India as a preferred destination for global AI infrastructure.

Investment momentum is evident in the $13‑15 bn already deployed and the $60‑70 bn pipeline slated for the next five years. Construction costs of $6‑7 million per megawatt are markedly lower than in Singapore or Japan, delivering a clear cost‑per‑MW advantage. Foreign institutional investors account for roughly 80 % of capital, underscoring confidence in the country’s long‑term returns. Hyperscale players are anchoring projects in Mumbai and Chennai while joint‑venture models spread risk and accelerate rollout.

Geographically, the ecosystem is diversifying beyond traditional metros. Emerging hubs such as Hyderabad, Bengaluru and Pune benefit from robust IT talent pools and land availability, while Tier‑II cities like Ahmedabad, Kochi and Jaipur are gaining traction thanks to competitive land prices and supportive state policies. By 2026, Tier‑II capacity is projected to exceed 100 MW, laying groundwork for a distributed, resilient network that can meet AI‑intensive workloads. This regional spread not only de‑congests primary hubs but also broadens economic impact across India’s states, reinforcing the country’s ascent as a global data‑centre powerhouse.