India’s Data Centre Boom to Drive Housing Demand of Over 195 Million Sqft by 2030: Square Yards Report
New Delhi, August 3, 2026: India’s rapidly expanding data centre ecosystem is set to become a significant driver of residential real estate demand in the coming years, according to new research published by proptech company Square Yards. Digital infrastructure is emerging as the next major catalyst for housing growth, reshaping urban corridors far beyond traditional IT hubs, Square Yards said in a press release.
The report estimates that India’s proposed data centre pipeline of approximately 9,030 MW has the potential to generate nearly 4.33 lakh ecosystem jobs. This workforce expansion translates into an estimated 195 million square feet of residential space demand by 2030. Recently achieving unicorn status following more than $95 million in fresh funding, the Gurugram-headquartered firm highlighted that data centres create unique value by attracting substantial investments in power infrastructure, fiber connectivity, logistics, and supporting commercial services, gradually transforming surrounding regions into thriving urban ecosystems.
While data centres are often viewed strictly as digital infrastructure assets, the study reveals that their long-term impact extends well beyond technology, acting as catalysts for housing demand, infrastructure investment, and urban expansion across emerging growth corridors. India currently generates nearly 20% of the world’s digital data but accounts for only 4% of global data centre capacity, indicating substantial headroom for infrastructure expansion. Driven by accelerating investments in artificial intelligence, cloud computing, and enterprise digitisation, the nation’s installed capacity is expected to grow significantly, bringing a new wave of infrastructure-led real estate development.
Highlighting this structural shift, Vivek Agarwal, Co-Founder and Chief Technology Officer at Square Yards, noted that data centres represent the next phase of India’s urban evolution. “For decades, India’s real estate growth has been shaped by highways, industrial corridors, airports and IT parks,” Agarwal said. “Data centers represent the next evolution of that story. While these facilities themselves employ relatively few people, they attract the critical infrastructure that enables long-term urban development. Investments in power, fiber connectivity and logistics create confidence for businesses, developers and institutions, eventually driving residential and commercial growth around these emerging digital corridors. We believe data centers will increasingly serve as infrastructure anchors that redefine how cities expand in the coming years.”
The report further reveals that the primary residential impact will not occur within the immediate data centre campuses. Instead, it identifies a 5–15 km “Golden Ring” surrounding major facilities where infrastructure upgrades, mixed-use developments, residential townships, retail centres, and civic amenities are projected to flourish. As these supporting ecosystems mature, sustained housing demand will be driven by ancillary employment and broader economic activity rather than direct workforce concentration.
Among the major state beneficiaries, Maharashtra is projected to lead the country by generating over 54 million sqft of residential demand. Karnataka follows with nearly 28 million sqft, Andhra Pradesh with over 23 million sqft, Uttar Pradesh with approximately 22.7 million sqft, Telangana with 21.6 million sqft, and Tamil Nadu with 19.4 million sqft. These regional markets are expected to witness heightened residential activity as digital infrastructure investments accelerate alongside utility, transport, and commercial development.
Concluding that India’s upcoming real estate growth cycle will be heavily influenced by digital infrastructure, the report projects emerging destinations such as Visakhapatnam, Noida, and GIFT City to benefit from sustained economic activity, improved connectivity, and long-term institutional investment. In this changing landscape, data centres are proving to be foundational infrastructure capable of reshaping land values, urban expansion, and overall housing demand across the country.
Reiterating the report’s core insights, Sunita Mishra, Vice President – Research & Insights at Square Yards, underscored the decentralised impact of this infrastructure wave. “Housing demand continuously chases areas that offer huge employment potential,” Mishra said. “Little wonder then that data centres in India are set to not only drive but shape the future of residential developments across the country. This growth will not be restricted to mega cities only. We expect Tier-2 and Tier-3 cities to benefit from this grand opportunity equally.”
