India is projected to increase its data centre capacity to around 4 gigawatts by the fiscal year 2030, with an estimated investment potential of Rs. 1.5 lakh crore. Currently, the country’s data centre capacity per million internet users stands at 1.2 megawatts, which is lower than the global average of 5 megawatts per million users.
Factors such as digitization, cost competitiveness, and the growing adoption of artificial intelligence are fueling significant growth in India’s data centre sector. In 2025, India held a 4% share of the global data centre market with a capacity of 1.2 gigawatts.
During the fiscal years 2022 to 2025, India’s co-location data centre capacity doubled to 1.2 gigawatts, accompanied by high absorption levels and an average utilization rate exceeding 90%, as highlighted in a report. The industry is expected to witness revenue growth at a compound annual rate of approximately 24% from fiscal year 2026 to 2030, maintaining stable EBITDA margins of about 40–42%.
The sector benefits from strong revenue predictability through long-term contractual agreements, ensuring steady cash flows and fostering strong customer loyalty. Industry experts emphasize the importance of managing cash flows effectively amidst rising costs and extended commissioning timelines to sustain growth in the data centre sector.
