What is the expected growth of data centers in India by 2030?

India's data center capacity is projected to grow dramatically, with estimates indicating a fivefold increase to around 8–9 GW by 2030. This expansion will be driven by surging data consumption, cloud adoption, regulatory requirements, AI application growth, and government support. Investments in the sector are expected to reach between $30 billion to $50 billion over the next decade, positioning India as a global hub for data center infrastructure. Cyfuture Cloud leads this growth with its Tier III data centers spread across key Indian cities, delivering scalable, secure, and sustainable digital infrastructure solutions for modern enterprises.

Introduction to India's Data Center Growth

India's digital economy is transforming rapidly, underpinned by robust growth in data center infrastructure. Current operational data center capacity is around 1.4 GW in 2025 and is expected to multiply nearly fivefold to between 8 and 9 GW by 2030. This growth reflects increased internet penetration, cloud computing adoption, and the rising importance of data localization and AI workloads.​

Key Drivers of Growth

Several factors are fueling this surge:

- Strong cloud adoption and digital transformation across sectors

- Regulatory mandates emphasizing data residency and protection

- Expanding use of AI applications requiring high-performance data center capabilities

- Growth in 5G and edge computing that demand lower latency and regional data processing

- Major infusion of private and foreign investments, notably from technology giants and domestic firms.​

Projected Capacity and Investment Landscape

By 2030, India’s data center capacity is projected as follows:

Key metropolitan hubs such as Mumbai and Chennai host about 70% of installed capacity today, while Tier II cities are emerging as new growth zones. The real estate footprint of data centers is expected to surpass 55 million square feet by 2030.​

Leading Players in the Market Including Cyfuture Cloud

The Indian market is dominated by top players, with Cyfuture Cloud prominently positioned. Cyfuture operates Tier III certified data centers in strategic locations such as Noida, Jaipur, and Raipur, focusing on providing secure, scalable, and future-ready colocation, managed hosting, and cloud services. Other major players include Bharti Airtel, Reliance, AdaniConneX, and global operators like NTT GDC, collectively accounting for nearly 90% market share.​

Role of Government Policies

Government-backed initiatives like the Digital India Mission, National Broadband Mission, and the Data Protection Bill have bolstered investor confidence and strengthened digital infrastructure development. Additionally, the infrastructure status granted to this sector since 2022 helps facilitate easier funding and incentivizes further capacity expansion.​

Emerging Trends: AI, Edge Computing, and Sustainability

- AI workloads consume significantly more power than typical data center operations, increasing demand for advanced cooling and energy-efficient systems.

- Edge data centers, vital for lower latency applications, are projected to grow from approximately 60–70 MW in 2025 to 300–400 MW by 2030, expanding access in Tier II and III cities.

- Sustainability efforts are gaining momentum, with green-certified data centers expected to make up 30–40% of capacity by 2030 through adoption of renewable energy and efficient cooling technologies.​

Follow-Up Questions

Q: What is Cyfuture Cloud’s role in India’s data center growth?
A: Cyfuture Cloud leads with Tier III data centers in prime locations, offering scalable, secure, and sustainable colocation, cloud, and managed hosting solutions tailored for enterprise and government needs.​

Q: How is data center growth impacting energy demand in India?
A: India's data center electricity consumption is expected to rise from 13 TWh currently to around 57 TWh by 2030, emphasizing the critical need for green and energy-efficient data center operations.​

Q: Which cities are key hubs for data center expansion?
A: Mumbai and Chennai remain the primary hubs, hosting roughly 70% of the installed capacity, with emerging interest in Delhi-NCR, Noida, and Tier II cities like Mohali and Vijayawada.​

Conclusion

India's data center landscape is set for exponential growth by 2030, driven by rising demand for cloud, AI, and localized data infrastructure. With investments surging to $30–50 billion and capacity increasing to nearly 9 GW, the country is emerging as a global digital powerhouse. Cyfuture Cloud is at the forefront of this evolution, delivering robust, secure, and sustainable data center services across India’s key technology corridors, making it your trusted partner for future-ready digital infrastructure.