New Delhi: India’s data centre capacity has more than doubled in 2025, rising from 191MW to 387MW in a year, a 103% year-on-year increase. Surging demand from artificial intelligence (AI), cloud services, enterprise digitisation and content streaming platforms has sparked renewed interest in the sector, a report by Savills India said.
“With data centre absorption estimated at ~430 MW in 2025, driven by both enterprise and hyperscale demand, India’s digital infrastructure growth is gaining strong momentum. Rising cloud adoption by enterprises is accelerating demand from global hyperscalers and domestic cloud players, while emerging locations such as Visakhapatnam, backed by policy support and cost advantages, are strengthening India’s attractiveness as a data centre destination. Beyond major metros, the rollout of 5G and the growing use of mobile streaming and digital services are driving hyperscale demand across Tier 2 cities to meet local data and latency requirements,” Srihari Srinivasan, Director & Lead Data Centre Services, Savills India, said.
Over the years, cloud service providers, domestic enterprises and hyperscalers have ramped up interest in the sector, especially as demand for AI-led workflows intensifies. According to the report, India’s total data centre capacity is expected to reach 4GW by 2030 as India’s data center infrastructure keeps up with demand.
Leading business houses, including Reliance Industries, Adani Enterprises, TCS, Facebook parent Meta and Google, are investing billions of dollars collectively to set up data centres in India, even as concerns about the unrestricted use of limited water resources haven’t been addressed yet.
Mumbai and Chennai are leading the race here, with almost 68% of the supply. For 2026, capacity additions are expected to exceed 600MW, with emerging Tier II and III cities expected to benefit.
“Kolkata is expected to lead with a 48% CAGR, owing to its strategic position as a gateway to Eastern and Northeastern India and the upcoming undersea cable landing station. Hyderabad (44%) and Ahmedabad (26%) are also witnessing strong momentum, backed by growth in IT, ITeS, and manufacturing sectors. Bengaluru, with a projected CAGR of 20%. Mumbai and Chennai, already the largest data centre markets, continue to grow steadily at CAGR of 22% and 18% respectively,” the report added.
