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India's data centre sector continued its growth momentum in the first half of 2026, with fresh capacity additions rising 59 per cent year-on-year to 258 MW IT, according to Savills India. The expansion increased the country's total operational data centre stock to 1.8 GW IT. The consultancy expects India's data centre capacity to exceed 7 GW IT by 2030, supported by strong demand from hyperscalers and large enterprises. However, the availability of adequate power supply and suitable land continues to remain a major challenge for future data centre development across key markets.
India's data centre sector recorded strong growth during the first half of 2026, with fresh capacity additions increasing 59 per cent year-on-year to 258 MW IT, according to a report released by Savills India. The growth reflects continued investment in digital infrastructure as demand for data storage and cloud services expands across the country.
Savills India said the country added 258 MW IT of new data centre capacity during January-June 2026, compared to 162 MW IT during the corresponding period last year. With these additions, India's total operational data centre capacity has reached 1.8 GW IT.
The report highlighted that facilities serving both hyperscalers and enterprise clients accounted for the largest share of the operational capacity at 55 per cent. Dedicated hyperscaler facilities contributed 36 per cent of the total operational stock, while enterprise-focused data centres accounted for 8 per cent and edge data centres represented 1 per cent.
Looking ahead, Savills India projected that the country's operational data centre capacity is expected to nearly quadruple and cross 7 GW IT by 2030. The forecast reflects growing digital adoption, increasing cloud deployments, artificial intelligence workloads and sustained investments in digital infrastructure.
Srihari Srinivasan, Director and Lead - Data Centre Services at Savills India, said the Indian data centre market continues to witness steady growth, supported by both established operators and new investors and developers entering the sector. He noted that while the broader colocation market has seen relatively moderate demand because more enterprises are shifting to cloud-based services, demand from hyperscalers and large enterprises remains strong and is expected to continue driving market expansion.
The consultancy also pointed to an emerging opportunity from Neo-Cloud service providers, which are assessing India as a strategic destination for expansion. According to Savills India, factors such as cost advantages, a location-independent operating model and the country's expanding digital infrastructure are making India increasingly attractive for these companies.
The report also noted that despite the positive growth outlook, securing reliable power supply and suitable land parcels continues to be one of the biggest challenges for data centre development across major markets. Srinivasan said these constraints are encouraging hyperscalers and data centre operators to identify new development clusters with support from state and local governments.
India has emerged as one of the fastest-growing data centre markets in the Asia-Pacific region over the past few years, driven by rapid digitalisation, higher internet usage, cloud adoption, artificial intelligence applications, expansion of the fintech ecosystem and government initiatives supporting digital infrastructure. Major cities such as Mumbai, Chennai, Hyderabad, Bengaluru, Delhi-NCR and Pune continue to attract a significant share of new data centre investments due to their connectivity, enterprise demand and infrastructure ecosystem.
Source PTI
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