India’s Data Centre Capacity Additions More Than Doubled in 2025: Savills India

New Delhi, January 9, 2026: India is rapidly emerging as one of the world’s fastest-growing data centre markets, underpinned by the shift towards cloud-native, AI-enabled and energy-efficient digital infrastructure. According to global real estate consultancy Savills India, the country added 387 MW IT of new data centre capacity in 2025, more than double the 191 MW IT added in 2024, marking a robust year-on-year growth of 103 per cent.

On the demand side, data centre absorption rose to 427 MW IT in 2025 from 407 MW IT in the previous year, registering a 5 per cent annual increase. This growth continues to be led by hyperscalers, with steady participation from enterprise colocation players. Additionally, the rollout of 5G, proliferation of IoT and rising demand for low-latency applications are accelerating the development of edge data centres across Tier II and Tier III cities.

Mumbai maintained its lead, contributing 48 per cent to total absorption in 2025, followed by Chennai at 22 per cent and the Tier-II cities contributed 7 per cent of the total absorption. On the supply side, Mumbai led the pack with 34 per cent of its contribution to overall supply, followed by Delhi-NCR (20 per cent) and Chennai at 19 per cent. Tier-II cities include Lucknow, Chandigarh, Patna, Raipur, Jaipur, Bhubaneswar, Cochin, Vizag and Coimbatore.

India’s data center market is poised for exponential growth, with total capacity projected to triple and reach over 4 GW IT by 2030, growing at a CAGR of 23 per cent. Annual average capacity additions are expected to accelerate to 350-450 MW IT between 2026 and 2030, nearly double the 150-200 MW IT added annually during 2022 to 2024.

Capacity additions across India’s key data center markets are projected to grow between 7 per cent and 70 per cent from 2025 to 2030, signaling a period of rapid expansion. Kolkata is expected to lead with a 48 per cent CAGR, owing to its strategic position as a gateway to Eastern and Northeastern India and the upcoming undersea cable landing station. Hyderabad (44 per cent) and Ahmedabad (26 per cent) are also witnessing strong momentum, backed by growth in IT, ITeS, and manufacturing sectors. Bengaluru, with a projected CAGR of 20 per cent.

Mumbai and Chennai, already the largest data center markets, continue to grow steadily at CAGR of 22 per cent and 18 per cent respectively, supported by strong cable landing infrastructure and demand from hyperscale players.

Outlook for 2026

The Data Centre market is set to witness a significant growth in 2026, with capacity additions expected to surpass 600 MW IT, while absorption expected to comfortably surpass 500 MW IT. Hyperscale data centres are likely to drive growth through rising cloud adoption and expanding SaaS and AI workloads, while 5G, IoT, and latency-sensitive demand are accelerating the expansion of edge data centres in Tier-II and III cities such as Vizag, Bhubaneswar, Patna, Lucknow, Jaipur, Kochi, Coimbatore, Madurai, Raipur and Hubli.