India witnessed a significant increase in data centre capacity in 2025, with additions more than doubling to 387 MW IT from 191 MW IT in 2024, reflecting a robust year-on-year growth of 103%. Data centre absorption also saw a rise to 427 MW IT from 407 MW IT in the previous year, marking a 5% annual increase.
The cities of Mumbai and Chennai played a pivotal role in data centre absorption, jointly representing 70% of the total at 427 MW IT. This surge was primarily driven by hyperscalers due to the increasing adoption of cloud services, AI workloads, 5G deployment, and IoT demand, as highlighted in a report by Savills India.
Projections indicate that the market is set to expand significantly, with expectations to triple to over 4 GW IT by 2030, growing at a Compound Annual Growth Rate (CAGR) of 23%. The term “MW IT capacity” refers to the electrical power (Megawatts) that a data centre facility can supply for its IT equipment.
Capacity additions soared by 103% year-on-year to 387 MW IT from 191 MW IT in 2024, resulting in an operational stock increase to 1,520 MW IT, a 34% rise, with Mumbai leading with a 34% supply share, followed by Delhi-NCR (20%) and Chennai (19%).
The growth in hyperscale data centres is being primarily driven by global hyperscalers, domestic cloud providers, and institutional investors. Additionally, enterprise colocation continues to drive demand, alongside edge data centres in Tier 2 and 3 cities, according to the report.
Emerging markets such as Visakhapatnam, Kolkata (projected 48% CAGR), and Hyderabad (projected 44% CAGR) are gaining momentum due to policy support, cost advantages, undersea cables, and low-latency requirements for 5G/IoT services. The Director and Lead Data Centre Services at Savills India, Srihari Srinivasan, emphasized the strong momentum in India’s digital infrastructure growth, driven by the rising cloud adoption and demand from global hyperscalers and domestic cloud providers.
The rollout of 5G and the increasing use of mobile streaming and digital services are fueling hyperscale demand in Tier 2 cities beyond major metros to meet local data and latency needs. These developments are reinforcing India’s position as a rapidly emerging global hub for scalable and long-term data centre investments.
