India’s Data Centre Capacity Set for Massive Expansion

MUMBAI: India’s data centres are gearing up to handle a digital deluge and the numbers are truly byte-sized. According to a new 2026 report by the Centre for Accelerating India’s Growth (CAIG) and the Nation First Policy Research and Change Foundation, the country’s data centre industry is entering a high-growth phase, driven by exploding data consumption, cloud adoption, AI workloads, and supportive government policies.

The report projects India’s installed data centre capacity will surge from 1,352 MW in 2024 to between 6,744 MW and 8,318 MW by 2030 representing a 4x to 6x increase in just six years. This massive expansion is fuelled by monthly mobile data usage, which is expected to jump from 9.6 exabytes in 2020 to nearly 46 exabytes by 2030.

The growth is not happening in isolation. Hyperscale demand, OTT platforms, enterprise digitisation, and emerging edge computing needs are reshaping the landscape, creating opportunities across hyperscale colocation, enterprise facilities, and modular edge data centres.

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Policy support is playing a starring role. The national Data Centre Policy 2020 and the Draft Data Centre Policy 2025 are streamlining approvals and improving ease of doing business, while several states are rolling out attractive incentives including subsidised power, stamp duty exemptions, single-window clearances, and land allocation support.

The report positions India as an emerging global player, noting that while the country enjoys strong cost and demand advantages, success will hinge on energy availability, sustainability measures, and alignment with international standards.

With digital infrastructure becoming the backbone of the economy, India’s data centre story is shifting from potential to powerhouse quietly building the massive digital foundations that will support everything from AI innovation to everyday streaming in the years ahead.

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