INDIA'S DATA CENTRE CAPACITY TO REACH 5 GW BY YEAR 2030 AND CAPEX TO CROSS $22 BILLION
India’s data centre capacity is expected to grow from 1.30 GW in 2024 to 5.0 GW by the year 2030, with capital expenditure projected to reach $20–22 billion during this period. India’s data centre market is currently valued at around $10 billion with a compound annual growth rate (CAGR) of 25%. Current capacity utilisation stands at 85%. India ranks 14th globally in terms of the number of data centres and is the second-fastest growing market in the Asia-Pacific region.
The country’s capital cost of data centre development is among the lowest in the world at $5.5 million per MW. Investor interest remains strong with more than $10 billion worth of data centre transactions already announced by global players. India’s largest cities — Mumbai, Chennai, Delhi NCR and Bengaluru — remain the major data centre hubs, while Tier-II cities like Ahmedabad, Lucknow, Kochi and Visakhapatnam are emerging as alternative locations driven by 5G rollout and low-latency processing needs.
India’s policy environment for data centres includes the 2020 Data Centre Policy draft and the 2022 infrastructure status recognition, which
have improved access to capital. States such as Maharashtra, Tamil Nadu and Karnataka offer special incentives including subsidised land, power, stamp duty exemptions and single-window clearances.
Some of the stocks that will benefit from this growth are