India’s Data Centre Capacity to Grow 4X by 2030, Hitting 4 GW IT: Savills India

New Delhi, July 17, 2025: The data centre market is poised for exponential growth with total capacity projected to quadruple and reach 4 GW IT by 2030, growing at a CAGR of 23 per cent, according to Savills India.

Annual average capacity addition is expected to accelerate to 350-450 MW IT between 2025 and 2030—nearly double the 150-200 MW IT added annually during 2022–2024. In the first half of 2025 alone, the country added 162 MW IT of new supply and recorded an absorption of 212 MW IT led by high demand in Mumbai and Chennai. 

The momentum is driven by rapid digital transformation, accelerated cloud adoption, rising mobile data consumption, 5G rollout and increasing AI-led workloads.

Key Stats: H1 2025 vs H1 2024 and Forecasts

Source: Savills India Research  

Note: The stock includes operator-owned facilities, including hyperscalers, enterprises and a mix of both.

“There is continued demand from both hyperscalers and enterprises in Tier 1 cities, mainly Mumbai, followed by Hyderabad. Also, Tier 2 cities, such as Lucknow, Chandigarh, Patna, Raipur, Jaipur, Bhubaneswar, Cochin, Vizag and Coimbatore, emerging as hubs for edge data centres, reflects a pivotal shift in India’s digital infrastructure strategy,” said Srihari Srinivasan, Director and lead data centre services, Savills India.

“With their contribution to supply and absorption projected to exceed 20 per cent by 2030, these markets are becoming critical to the sector’s decentralised growth. This momentum, combined with sustained policy support from Central and state governments, is expected to drive significant investment activity from both domestic and global players, underscoring the long-term potential of India’s evolving data centre ecosystem.”

DC Supply and Absorption in H1 2025

Source: Savills India Research  

Note: Tier 2 cities include Lucknow, Chandigarh, Patna, Raipur, Jaipur, Bhubaneswar, Cochin, Vizag and Coimbatore. 

In H1 2025, Mumbai maintained its lead, contributing 61 per cent to total absorption, followed by Chennai at 26 per cent and the tier 2 cities contributed 8 per cent of the total absorption. On the supply side, Mumbai led the pack with 47 per cent of its contribution to overall supply followed by Chennai at 30 per cent and Bengaluru at 14 per cent in H1 2025.

Operator-based Existing DC Capacity and Forecasts

Source: Savills India Research

Capacity additions across key data centre markets are projected to grow between 7 per cent and 70 per cent from 2024 to 2030, signalling 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 underseable 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, remains a critical node in the national data centre map driven by its deep enterprise base, tech ecosystem and demand for colocation facilities. Mumbai and Chennai, already the largest data centre 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.