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India's data centre (DC) sector has attracted nearly USD 15 billion in investments since 2020 and is expected to draw an additional USD 20-25 billion over the next six years, according to Colliers India. As of April 2025, total DC capacity across Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune reached 1,263 MW, projected to surpass 4,500 MW by 2030. The physical DC footprint is also set to grow from 15.9 million sq. ft. to 55 million sq. ft. This surge is driven by rising demand for digital services, cloud computing, AI technologies, and regulatory data localisation. Colliers highlights India's strengths: ample land, reliable power, and skilled talent, positioning the country as a top APAC data centre destination. The market is evolving with increasing interest in edge data centres to support real-time applications and low-latency needs, further fuelling sectoral growth.
According to a recent report by Colliers India, the data center sector in India has drawn nearly USD 15 billion in investments since 2020 and is expected to attract an additional USD 20-25 billion over the next six years. The surge in investments is largely attributed to the rising demand for digital services, cloud computing, and AI-driven technologies. Advertisement
As of April 2025, the total data centre capacity across seven leading cities-Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune-stood at 1,263 MW. Colliers projected that this figure is expected to exceed 4,500 MW by the end of the decade. The consultant highlighted that this expansion in capacity would also trigger a significant rise in the physical real estate footprint of data centres, from the current 15.9 million sq ft to an estimated 55 million sq ft by 2030.
Colliers explained that the growth of India's DC industry over the past five to six years has been matched by substantial investment, with approximately USD 14.7 billion already channelled into land acquisitions, infrastructure construction, and project development. Looking ahead, the firm stated that India's increasing reliance on cloud technology and AI adoption would likely attract an additional USD 20-25 billion into the sector over the next six years.
The data compiled focuses on co-location data centres located in the top seven urban hubs and accounts for the total IT load capacity-both currently utilised and available for future use.
Jatin Shah, Chief Operating Officer at Colliers India, remarked that India is fast emerging as a global hotspot for data centres, a trend being fuelled by rapid digitalisation, regulatory support for data localisation, and favourable government initiatives. He noted that if this growth continues, India's DC capacity is expected to surpass 4,500 MW within the next five to six years, with a corresponding expansion in the built-up area to about 55 million sq ft.
Shah also pointed out that India's strategic strengths-including the availability of land, a steady power supply, and a skilled workforce-are reinforcing its status as a preferred data centre destination within the Asia-Pacific region. Additionally, he observed that the market is evolving beyond traditional large-scale colocation and hyperscaler facilities, with edge data centres gaining traction. This shift is being driven by the growing demand for lower latency, real-time analytics, improved application performance, and enhanced business responsiveness.
With strategic advantages such as abundant land, robust power infrastructure, and a skilled talent pool, India is well-positioned to cement its role as a key player in the APAC region's data ecosystem. As cloud and AI technologies continue to advance, the sector is likely to see further innovation, investment, and infrastructural transformation in the years ahead.
Source - PTI
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