In Short : India’s data centre capacity is projected to reach 7.1 GW, backed by a ₹2 lakh crore investment pipeline. Driven by rising digital demand and AI growth, the expansion spans 87 projects across 17 states. With 86% of capacity still under construction, the sector is set to play a pivotal role in supporting India’s digital and energy-efficient future.
In Detail :India is witnessing a significant surge in data centre development, with total projected capacity expected to reach 7.1 GW. This growth is supported by an investment pipeline worth ₹2 lakh crore, reflecting the country’s ambition to become a major global hub for digital infrastructure.
A total of 87 data centre projects are currently underway across 17 states. These projects are being driven by the rising demand for digital services, cloud computing, and the rapid growth of artificial intelligence, which require large-scale computing and storage capabilities.
Of the total planned capacity, only 14% has been commissioned so far. The remaining 86% is still under construction or in the planning phase, indicating the vast potential for growth in the near future. This points to an evolving and rapidly expanding industry that is still in its early stages of transformation.
The push for data centres is also aligned with India’s energy transition goals. Many of these facilities are being designed with sustainability in mind, incorporating renewable energy sources and energy-efficient technologies to reduce their carbon footprint.
Additionally, state governments are playing a key role by offering incentives, infrastructure support, and policy frameworks to attract investments. These efforts aim to decentralize data centre development beyond major metros and bring digital infrastructure to tier-2 and tier-3 cities.
As India strengthens its digital backbone, the expansion of data centres is set to create new opportunities in technology, real estate, and energy sectors. The ₹2 lakh crore pipeline represents not just a digital leap, but also a catalyst for economic growth and innovation across the country.
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