India’s Data Centre Market to Grow 21% CAGR by 2030: Savills India

New Delhi, January 24, 2025: Data centre stock is projected to grow at a CAGR of 21 per cent between 2024 and 2030 to reach 3,400 MW IT by 2030, says global real estate advisory firm Savills India. The market is likely to witness a total capacity addition of over 600 MW IT and absorption of over 450 MW IT in 2025.

The demand for data centres in India continues to rise, driven by factors such as the increasing adoption of cloud computing, the expansion of big data, the Internet of Things (IoT), Artificial Intelligence (AI), and the rapid growth of e-commerce and digital transformation initiatives. In 2024, India witnessed an absorption of 407 MW IT capacity and the addition of 191 MW IT capacity across key cities, according to Savills India.

This demand was fueled by hyperscalers, BFSI (Banking, Financial Services, and Insurance), IT & ITeS, and service sectors, all of which heavily rely on data centre operators for colocation and related services. India is experiencing a surge in data centre land transactions, driven by growing demand and expansions by data centre operators and hyperscalers acquiring land across key cities. In 2024, over 200 acres of land were acquired in Mumbai, Hyderabad, Pune, Chennai and Bengaluru.

“India is rapidly emerging as a global data centre hub. The current momentum positions India as a promising global data centre hub. We project a strong demand for data centres in India in 2025, with an estimated demand of over 450 MW IT across major cities, while supply addition is expected to reach 600 MW IT during the same period. The increasing penetration of 5G and the rise in mobile application usage are driving demand for edge data centres in Tier II and Tier III cities such as Bhubaneswar, Patna, Lucknow, Jaipur, Kochi, Vizag, Coimbatore, Madurai, Raipur, and Hubli. Meanwhile, dominant Tier I cities continue to grow. By 2030, we expect data centre stock to reach 3,400 MW IT across major cities,” said Srihari Srinivasan, Director & Lead Data Centre Services, Savills India.

Key Findings

• Mumbai led the absorption market with 53 per cent of total absorption, followed by Hyderabad (14 per cent), and Chennai and Pune with 10 per cent each.
• Between data centre operators and hyperscalers over 200 acres of land have been acquired in 2024.
• Supply and absorption were predominantly concentrated in Mumbai, Chennai, Hyderabad, and Pune.
• Increased demand for edge data centres emerging from Tier II and Tier-III cities.
• The operational capacity stood at 1,110 MW IT as of 2024, reflecting a CAGR of 22 per cent since 2014.
• Hyperscalers accounted for 22 per cent of the total stock, enterprises held 10 per cent, and the remaining 68 per cent was utilized by a mix of both.