India's Data Centre Capacity to Triple by 2030: Redseer Insights

30 SEC SUMMARY

• India's data centre capacity is expected to triple by 2030, growing from 1.65 GW to 5-6 GW, driven by AI and deeptech demand.
• Redseer Strategy Consultants projects a CAGR of 27-32% from 2020 to 2030.
• Mumbai and Chennai currently dominate the installed capacity, but Hyderabad and Gujarat are emerging as new hotspots.

TABLE OF CONTENTS

1. Introduction
2. Current Capacity and Future Projections
3. Driving Factors
4. Geographical Shifts
5. Conclusion
6. Call-to-Action

KEY HIGHLIGHTS

• India's data centre capacity to grow from 1.65 GW to 5-6 GW by 2030.
• CAGR of 27-32% projected from 2020 to 2030.
• Mumbai and Chennai dominate current capacity, but Hyderabad and Gujarat are emerging.

Introduction

In 2025, India's installed data centre capacity stood at approximately 1.65 gigawatts (GW). According to Redseer Strategy Consultants, this capacity is expected to triple by 2030, reaching between 5 and 6 GW. This significant growth is driven by the burgeoning demand for data storage, AI workloads, and the relatively low cost of setting up data centres in India.

Current Capacity and Future Projections

As of 2025, India's data centre capacity was around 1.65 GW. The Redseer report projects this to grow to 5-6 GW by 2030, indicating a Compound Annual Growth Rate (CAGR) of 27-32% over the decade. This trajectory necessitates the commissioning of several times the current installed capacity within the next five years.

Driving Factors

The surge in data centre demand is driven by several factors:

• Local Data Storage Requirements: Laws such as the Digital Personal Data Protection Act and sectoral mandates from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) necessitate local data storage.
• Increasing Data Consumption: The growing consumption of data and AI workloads are major contributors to the demand.
• Cost Efficiency: The low cost of setting up data centres in India, estimated at around USD 8 million per megawatt, makes it an attractive location for new facilities.

Geographical Shifts

Currently, Mumbai accounts for around 50% of India's installed data centre capacity, with Mumbai and Chennai together accounting for approximately 66%. However, as AI demand continues to grow, the geographical distribution of data centres is expected to shift.

Redseer anticipates that latency-sensitive inference and regulated workloads will remain concentrated in established hubs like Mumbai and Chennai. Conversely, training and batch workloads are likely to move to locations with better power and land availability.

Emerging hotspots include Hyderabad and the Andhra coast, as well as Gujarat and Rajasthan, which are projected to see significant growth in training and batch workloads.

Conclusion

By 2030, India's data centre capacity is set to triple, driven by the increasing demand for AI and deeptech applications. This growth will not only enhance the country's data storage capabilities but also position it as a key player in the global data centre market. The geographical shifts predicted by Redseer will likely reshape the landscape of data centre locations in India.

Call-to-Action

Start your day with impactful startup stories and concise news! All delivered in a quick five-minute read in your inbox.

Subscribe to our daily newsletter at blogy.in.