India’s data centre capacity to hit 3,250 MW IT by 2030

This represents a CAGR of 23% from H1 2024.

According to a recent Savills report, data centres in India are primarily concentrated in Mumbai, Chennai, Bengaluru, Hyderabad, and Delhi-NCR due to their connectivity, infrastructure, energy availability, and demand from enterprises and cloud service providers. Mumbai is often regarded as the data centre capital of India due to its robust infrastructure, proximity to undersea data cable landing stations, and financial hub status.

“It is followed by Chennai, a key location for data centres, thanks to multiple submarine data cable landings which make it ideal for connectivity to global networks. Bengaluru, Pune, Delhi-NCR, Hyderabad are also witnessing significant traction as growing hubs for data centres, driven by their thriving IT industries, while a surge in activity has been witnessed in several Tier-II and III cities due to growing demand for edge data centres,” the report added.

Here’s more from Savills:

Data centre stock has grown at a CAGR of 22% from 158 MW IT in 2014 to 942 MW IT in 1H/2024. The total capacity as of 1H/2024 was around 942 MW IT spread across Mumbai (55%), Chennai (12%), Delhi-NCR (11%), Bengaluru (8 %) and Pune (7%). Mumbai and Chennai are dominant markets for data centres, together accounting for over 67% of the total capacity in the county due to their proximity to key submarine data cable landing stations.

The total data centre capacity in India is expected to grow at a CAGR of 23% from 1H/2024 to 3,250 MW IT by 2030. The annual growth in capacity varies from 13% to 48% across different cities. Higher annual growth is likely to be witnessed in emerging cities such as Kolkata (48%) and Hyderabad (47%). Kolkata is gaining traction as it serves as a gateway to Eastern and Northeastern India, with proximity to a planned undersea cable landing station expected to be operational by 2026, while Hyderabad and Ahmedabad are benefitting from growing IT & ITeS and manufacturing industries.

Of the total stock in 1H/2024, stock dedicated for hyperscalers accounted for 22%, while that for enterprises stood at 10% and a mix of both hyperscalers and enterprises accounted for the remaining 68%.