According to Colliers, the country will attract between $20 billion and $25 billion in investments to meet the growing demand for cloud, AI, and IoT services.
The data center industry in India is undergoing a major transformation. According to the latest report from real estate consulting firm Colliers, the capacity of data centers (DC) in major cities across the country reached 1,263 MW in April 2025, quadrupling in the last six years. And the trend shows no signs of stopping: it is expected that by 2030, this figure will exceed 4,500 MW, driven by a rapidly expanding digital ecosystem and favorable government policies.
This growth is accompanied by a significant expansion of the real estate space dedicated to these centers, which has increased from around 5 million square meters to 16 million in just six years. By the end of the decade, the associated real estate footprint could reach 55 million square meters.
Mumbai continues to lead, but other cities are emerging strongly
Mumbai maintains its position as the leading data center hub in the country, accounting for 41% of total capacity, followed by Chennai (23%) and Delhi NCR (14%). Since 2020, nearly half of the installed capacity has been added in these three regions. However, other cities like Hyderabad, Bengaluru, and Pune are rising in prominence, with projected exponential growth in their data center inventories.
Hyderabad, in particular, is shaping up to be a new strategic hub due to its availability of land, reliable power supply, and specialized talent.
Rise of hyperscale and Edge data centers
The report also highlights the sustained increase in large-capacity data centers. While in 2020 only 42% of total capacity corresponded to facilities over 20 MW, by 2025 this percentage will reach 56%. It is estimated that by 2030, centers with over 50 MW will represent two-thirds of the total inventory. Chennai excels in this segment, accounting for 45% of new installations in the category of over 50 MW in recent years.
At the same time, the development of Edge data centers, which are smaller but strategically located to offer low latency and real-time processing, is solidifying. This type of infrastructure is gaining traction in a digital environment where speed and application performance are prioritized.
A market prepared for artificial intelligence and sustainability
The rise of cloud computing and artificial intelligence is reshaping market demands. As a result, many operators are adopting land banking strategies and prioritizing investments in AI- and HPC-ready infrastructure.
Sustainability is also a key factor. According to Colliers, the proportion of green-certified data centers is expected to increase from the current 25% to 30-40% by 2030, in line with global demand for energy-efficient and responsible operations.
Up to $25 billion in expected investments
Since 2020, the data center market in India has attracted $14.7 billion in investments, primarily aimed at land acquisition, construction, and development. For the next five to six years, investments are projected to reach between $20 billion and $25 billion, solidifying India as one of the most attractive locations in the Asia-Pacific region for the deployment of advanced digital infrastructure.
With a combination of global connectivity through submarine cables, competitive costs, favorable government policies, and an expanding tech ecosystem, India is positioning itself as a key player in the digital revolution of the next decade.
Source: colliers