Data centre boom: $20-25 billion investment to take capacity to 4,500 MW by 2030

Out of 1,263 MW, Mumbai and Chennai cumulatively hold close to two-thirds of the capacity. Large-sized data centres (>50 MW) are likely to account for nearly two-thirds of the inventory by 2030, the report said.

At the city level, Mumbai accounts for the majority of the capacity with a 41 percent share, followed by Chennai and Delhi-NCR at 23 percent and 14 percent, respectively.

According to Colliers’ The digital backbone: Data Center Growth Prospects in India report, the capacity growth is supported by established global connectivity through submarine cables, availability of land and power at comparatively lower costs, supportive government policies, and burgeoning demand.

Major data centre operators are also planning to expand their presence and are committing long-term investments across Tier 2 and 3 cities.

Jatin Shah, Chief Operating Officer, Colliers India, said India’s data centre sector has significantly scaled up in the past few years. India is becoming a global data centre hotspot, fuelled by rapid digitalization, data localisation norms and strong government support.

“As this growth trajectory continues, India’s DC (data centre) capacity is likely to cross 4,500 MW in the next 5-6 years, translating into a real estate footprint of 55 msf. India’s strategic advantages such as availability of land parcels, power supply for usage and availability of skilled talent, reinforces its position as one of the preferred destinations for data centres in the APAC region,” he said.

Vimal Nadar, national director & head of research, Colliers India, said that India’s market is likely to mature amid increasing demand, supportive government policies and the country’s continued commitment towards digital transformation.

“In the coming years, the demand for high-density rack configurations and advanced computing infrastructure will further rise. Data centre investments of about $20-25 billion are likely to materialise over the course of the next five to six years,” he said.

Operators and developers will increasingly seek land-banking strategies and expand into growing markets with high data consumption levels.

Investments in energy-efficient and green-certified data centres, too, will gain ground, as leading players imbibe sustainable practices, Nadar said.

“Green penetration in the industry, thus is likely to increase from 25 percent currently to 30-40 percent by 2030,” he said.

Uddhav Poddar, CMD, Bhumika Group, said that the growing investment in data centres—projected at $20–$25 billion by 2030—is a clear sign of how digital infrastructure is becoming more central to India’s growth story.

“Developers now need to consider factors like power availability, connectivity, and compliance with technical requirements that go beyond traditional commercial or industrial spaces. Emerging hubs within NCR, such as Faridabad, are attracting increasing attention due to their strong connectivity and infrastructure. This evolving landscape offers steady opportunities for developers ready to align with the unique needs of data centre segment,” he said.