India’s data centre market, valued at around $10 billion in 2025, is projected to more than double to $22 billion by 2030. This growth trend highlights increasing investor confidence and a strong growth trajectory in the sector. According to Vestian’s latest report, India is becoming a key data centre hub in the Asia-Pacific region.
The report forecasts sustained expansion in India’s data centre market over the next decade, driven by the rapid pace of digital transformation across various industries. By the end of 2026, the installed capacity is expected to range between 1.7–2.0 GW, supported by investments nearing $30 billion. This capacity is anticipated to further increase to 4-5 GW by 2030.
India’s digital economy acceleration, expanding internet user base, and rising investments from hyperscale operators are positioning the country as a significant destination for data infrastructure development. Shrinivas Rao, CEO of Vestian, noted that India’s data centre sector is undergoing rapid transformation due to robust policy support and escalating digital demands.
With streamlined processes like single-window clearances, long-term tax exemptions, GST benefits, and incentives extended up to 2047, India is strategically poised to emerge as a global data centre and AI hub. Between 2020 and 2024, the sector attracted investments ranging from $13–15 billion, with foreign institutional investors contributing nearly 80% of the total capital inflows.
The report also highlights that India offers a competitive cost advantage, with data centre construction costs per MW ranging from $6–7 million, significantly lower than mature APAC markets like Singapore and Japan. This cost efficiency enhances India’s appeal for substantial investments on a large scale. Data centre infrastructure in India is primarily concentrated in key metropolitan markets, with Mumbai leading as the largest data centre hub, supported by strong global connectivity and infrastructure advantages.
