KPMG forecasts India data center growth

KPMG in India released a report titled 'India's Data Centre Revolution - The Integrated Lifecycle Blueprint (2026-2030)', forecasting that India's data center sector revenue will reach approximately USD 45.69 billion by 2033. The report highlights that the industry is entering a phase of accelerated expansion, driven by rising AI-driven workloads, increasing cloud adoption, widespread 5G technology, and evolving data localization requirements, particularly due to the Digital Personal Data Protection (DPDP) Act 2023. It emphasizes a shift from fragmented service provider models to integrated lifecycle partnerships to address the increasing complexity of delivering scalable, compliant, and operationally integrated infrastructure solutions. The report also projects India's AI-optimized data center market to grow from USD 588.6 million in 2024 to nearly USD 3.55 billion by 2030, stressing the need for specialized liquid cooling systems and high-density power distribution for AI-ready facilities. ESG considerations are also noted as increasingly influencing investment attractiveness.