India's Data Centre Sector to Attract $25 Billion in Investments by 2030, Forecasts Colliers India

New Delhi, May 29 – With around USD 15 billion in investments since 2020, India’s data centre (DC) sector is seeing a revolutionary expansion. As demand for digital infrastructure rises, the industry is expected to attract an extra USD 20–25 billion over the next six years, according to a forecast by real estate firm Colliers India.

Rapid Growth in Capacity and Real Estate Footprint

India’s current data centre capacity stands at 1,263 megawatts (MW) as of April 2025. The data centres are spread across seven major metropolitan areas: Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune. Colliers projects that this capacity will surpass 4,500 MW by 2030, with a fourfold increase.

The physical footprint of DC infrastructure is also expected to expand substantially. From the existing 15.9 million square feet, the total real estate occupied by data centres is anticipated to grow to around 55 million square feet by the end of the decade.

Key Drivers Behind the Investment Surge

The report explains that the sector’s rapid growth is due to:

• Rising digitalisation across sectors
• Government mandates on data localisation
• Increased adoption of cloud computing and AI

“These trends have resulted in strong investor interest, with capital flowing primarily into land acquisition and project development,” the report stated.

Jatin Shah, Chief Operating Officer at Colliers India, highlighted India’s emergence as a global hub for data centres. He noted that the country’s strategic advantages—such as available land, robust power supply, and a skilled workforce—make it a preferred destination in the Asia-Pacific region.

Expansion Beyond Hyperscale to Edge Data Centres

The landscape of data centres in India is changing beyond massive colocation facilities and hyperscalers. The demand for lower latency, real-time processing, better application performance, and increased business agility is fueling the growth of edge data centres.

“As this growth trajectory continues, India’s DC industry is not just scaling in size but also diversifying in capability, aligning with global trends,” Shah added.

Outlook

India is set to increase its status as a leading data centre market globally, as its investment inflow is expected to reach USD 25 billion with a five-fold increase in infrastructure by 2030.