India data centre capacity to quadruple by 2030
Analysis based on 6 articles · First reported Jul 21, 2026 · Last updated Jul 22, 2026
The rapid expansion of India's data centre capacity signals strong demand for digital infrastructure, benefiting technology and real estate sectors. However, rising water and power consumption may strain resources and increase operational costs, potentially impacting energy and utility markets.
According to a report by Rubix Data Sciences, India's installed data centre capacity is projected to grow from 1.5 GW in 2025 to 6.5 GW by 2030, driven by demand from AI, cloud computing, and digital services. The sector added 387 MW in 2025, more than double the 191 MW added in 2024. As of January 2026, India had 271 data centres, with India — Mumbai, India — Hyderabad, India — Delhi NCR, India — Bengaluru, and India — Chennai accounting for nearly 65% of facilities. The investment pipeline stands at around $90 billion, nearly six times the $13-15 billion invested between 2020 and 2024, led by commitments from Amazon — Amazon Web Services, Microsoft, and Alphabet Inc. totalling about $67.5 billion. The report highlights challenges: water consumption is expected to rise from 150 billion litres annually to 359 billion litres by 2030, and electricity demand from data centres is projected to increase from 1 GW to 13.56 GW by 2031-32, according to the Ministry of Power. Despite generating nearly 20% of the world's data, India accounts for only 3-4% of global data centre capacity, indicating significant growth potential. Tushar Bhaskar, President of Rubix Data Sciences, noted that the sector has entered an AI-driven investment cycle and that execution and sustainability will be key.
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