India Data Center Market to Grow at 23% CAGR by 2030: Savills India

India’s data center market is poised for exponential growth, with total capacity projected to quadruple and reach 4 GW IT by 2030, growing at a CAGR of 23%, according to Savills India. Annual average capacity additions are expected to accelerate to 350-450 MW IT between 2025 and 2030- nearly double the 150-200 MW IT added annually during 2022–2024. In the first half of 2025 alone, the country added 162 MW IT of new supply and recorded an absorption of 212 MW IT, led by high demand in Mumbai and Chennai. This momentum is driven by rapid digital transformation, accelerated cloud adoption, rising mobile data consumption, 5G rollout, and increasing AI-led workloads.

Key Stats: H1 2025 vs H1 2024 and Forecasts

Source: Savills India Research  

Note: The stock includes operator-owned facilities, including hyperscalers, enterprises, and a mix of both.

“There is continued demand from both hyperscalers and enterprises in Tier-1 cities, mainly Mumbai followed by Hyderabad. Also, Tier-II cities such as Lucknow, Chandigarh, Patna, Raipur, Jaipur, Bhubaneswar, Cochin, Vizag and Coimbatore emerging hubs for edge data centers reflects a pivotal shift in India’s digital infrastructure strategy. With their contribution to supply and absorption projected to exceed 20% by 2030, these markets are becoming critical to the sector’s decentralized growth. This momentum, combined with sustained policy support from central and state governments, is expected to drive significant investment activity from both domestic and global players, underscoring the long-term potential of India’s evolving data center ecosystem, “Srihari Srinivasan, Director & Lead Data Centre Services, Savills India.

DC Supply and Absorption in H1 2025

Source: Savills India Research  

Note: Tier-II cities include Lucknow, Chandigarh, Patna, Raipur, Jaipur, Bhubaneswar, Cochin, Vizag and Coimbatore. 

In H1 2025, Mumbai maintained its lead, contributing 61% to total absorption, followed by Chennai at 26% and the Tier-II cities contributed 8% of the total absorption. On the supply side, Mumbai led the pack with 47% of its contribution to overall supply followed by Chennai (30%) and Bengaluru at 14% in H1 2025.

Operator-based Existing DC Capacity and Forecasts

Source: Savills India Research

Capacity additions across India’s key data center markets are projected to grow between 7% and 70% from 2024 to 2030, signaling a period of rapid expansion. Kolkata is expected to lead with a 48% CAGR, owing to its strategic position as a gateway to Eastern and Northeastern India and the upcoming undersea cable landing station. Hyderabad (44%) and Ahmedabad (26%) are also witnessing strong momentum, backed by growth in IT, ITeS, and manufacturing sectors. Bengaluru, with a projected CAGR of 20%, remains a critical node in the national data center map, driven by its deep enterprise base, tech ecosystem, and demand for colocation facilities. Mumbai and Chennai, already the largest data center markets, continue to grow steadily at CAGR of 22% and 18% respectively, supported by strong cable landing infrastructure and demand from hyperscale players.