India’s Data Centre Market Projected to Surpass USD 22 Billion by 2030 as AI and Cloud Demand Surge: Vestian
New Delhi, April 13, 2026
India’s data centre market is on a trajectory to more than double its valuation, reaching an estimated USD 22 billion by 2030. According to the latest sector report from Vestian, this rapid expansion is being fueled by a global surge in cloud computing, artificial intelligence, and data-intensive technologies, which are expected to push worldwide capacity beyond 100 GW by the end of the decade.
The domestic market, valued at approximately USD 10 billion in 2025, is benefiting from an accelerating digital economy and a massive increase in internet users. The report highlights that the rollout of 5G infrastructure has pushed average monthly wireless data consumption past 25 GB per user. This surge, combined with rising enterprise cloud adoption and the growth of digital payments and OTT platforms, has created an urgent need for scalable infrastructure.
According to a press release from Vestian, the sector currently operates with a capacity of 1.4 to 1.6 GW across 164 data centres. However, the pipeline for growth is substantial, with over 700 MW currently under construction and an additional 1 to 1.2 GW in the planning stages. Projections suggest that India’s total capacity could reach between 4 and 5 GW by 2030, reflecting high investor confidence in the nation’s digital backbone.
Commenting on the sector’s evolution, Shrinivas Rao, FRICS, CEO of Vestian, said, “India’s data centre sector is rapidly transforming on the back of strong policy support and rising digital demand. Despite a limited share of global capacity, India has a huge upside potential to lead in AI infrastructure. With single-window clearances, 20-year tax exemptions, GST benefits, and incentives extending to 2047, India is strategically positioned to emerge as a global data centre and AI hub.”
Investment activity underscores this potential, with the industry attracting between USD 13 billion and USD 15 billion from 2020 to 2024. Notably, foreign institutional investors contributed nearly 80% of these inflows. Looking ahead, the investment pipeline appears even more robust, with announced projects totaling USD 60 billion to USD 70 billion over the next five years. India’s competitive construction costs—estimated at USD 6 million to USD 7 million per MW—give it a distinct advantage over mature markets like Singapore and Japan.
Geographically, infrastructure remains concentrated in major metropolitan areas, with Mumbai standing as the country’s largest hub, holding a 49% share of operational capacity. Chennai follows with 18%, serving as a critical global data gateway due to its submarine cable landings. Other major contributors include the National Capital Region (NCR) at 11%, Pune at 8%, and Bengaluru at 7%, all benefiting from established IT ecosystems and competitive operating costs.
While major metros dominate the current landscape, operators are increasingly turning their attention toward Tier-II cities such as Ahmedabad, Kochi, and Jaipur. These emerging markets are gaining traction due to supportive state policies and the need for distributed digital infrastructure. Capacity in these secondary markets is expected to exceed 100 MW by the end of 2026, marking the next phase of India’s journey toward becoming a global data powerhouse, the press release added.
