India's Data Centre Capacity to Surge 77% by 2027
16 Apr 2025
3 Min Read
CW Team
India’s data centre industry is growing fast and is expected to reach 1.8 GW of total capacity by 2027 � a 77 per cent increase, says JLL. These centres are the backbone of digital services, helping store, process, and manage huge amounts of data.
As more people use cloud services, online banking, video streaming, and e-commerce, the need for data centres is rising quickly. To meet this demand, India will need around 9.3 million sq ft of new space to add 795 MW of capacity, according to JLL Research.
One big reason for this growth is India’s rising data usage. Nokia’s latest Mobile Broadband Index (MbiT) report says the average data used per person per month was 27.5 GB in 2024, and it could grow to 50 GB by 2030. This means India will need stronger and more scalable digital infrastructure.
Major Indian cities are emerging as key hubs for this growth. Mumbai leads with 536 MW of colocation capacity, while Chennai is catching up with 113 MW and eight cable landing stations, making it attractive to tech firms and banks. Delhi-NCR is also quickly establishing itself as a strong player, with 112 MW spread across 15 sites and rising demand from cloud service providers, supported by government initiatives like the IndiaAI mission, according to JLL.
Policy support is playing a pivotal role in the growth of India’s data centre industry. The government’s move to grant infrastructure status to data centres, along with state-level policies is making it easier for developers and operators to invest and expand. The Rs 103 billion IndiaAI Mission approved in 2024 is another step forward, aiming to boost AI computing infrastructure including GPU clusters and high-performance systems that are increasingly essential for modern data centres.
Sharing his views on the rising demand for data centres and India’s growing role in this space, Amit Sarin, Managing Director, Anant Raj, said, “The global demand for data centres is witnessing an unprecedented surge, driven by rapid advancements in technology, the proliferation of social media, accelerated digital adoption, cloud computing, and the rise of AI. In this evolving landscape, India has emerged as a key growth hub for data centre development, catering to both domestic and international requirements.�
“At Anant Raj, we are proud to contribute to this growth through our dedicated data center arm, Anant Raj Cloud. We have committed over ?10,000 crore to develop 307 MW of data center capacity, along with a range of cloud services, across key locations in Haryana,� he added.
Sustainability is also becoming a key focus as the sector grows. Many data centre players are adopting green building practices, energy-efficient technologies, and renewable energy integration to reduce their environmental impact.
Looking ahead, the industry’s next wave of expansion is likely to be shaped by rising demand for edge computing, increasing cloud adoption by enterprises, and the push for AI-integrated solutions. With improving infrastructure, policy support, and a focus on sustainability, India is well-positioned to emerge as a global data centre destination in the coming years.
India’s data centre industry is growing fast and is expected to reach 1.8 GW of total capacity by 2027 � a 77 per cent increase, says JLL. These centres are the backbone of digital services, helping store, process, and manage huge amounts of data.
As more people use cloud services, online banking, video streaming, and e-commerce, the need for data centres is rising quickly. To meet this demand, India will need around 9.3 million sq ft of new space to add 795 MW of capacity, according to JLL Research.
One big reason for this growth is India’s rising data usage. Nokia’s latest Mobile Broadband Index (MbiT) report says the average data used per person per month was 27.5 GB in 2024, and it could grow to 50 GB by 2030. This means India will need stronger and more scalable digital infrastructure.
Major Indian cities are emerging as key hubs for this growth. Mumbai leads with 536 MW of colocation capacity, while Chennai is catching up with 113 MW and eight cable landing stations, making it attractive to tech firms and banks. Delhi-NCR is also quickly establishing itself as a strong player, with 112 MW spread across 15 sites and rising demand from cloud service providers, supported by government initiatives like the IndiaAI mission, according to JLL.
Policy support is playing a pivotal role in the growth of India’s data centre industry. The government’s move to grant infrastructure status to data centres, along with state-level policies is making it easier for developers and operators to invest and expand. The Rs 103 billion IndiaAI Mission approved in 2024 is another step forward, aiming to boost AI computing infrastructure including GPU clusters and high-performance systems that are increasingly essential for modern data centres.
Sharing his views on the rising demand for data centres and India’s growing role in this space, Amit Sarin, Managing Director, Anant Raj, said, “The global demand for data centres is witnessing an unprecedented surge, driven by rapid advancements in technology, the proliferation of social media, accelerated digital adoption, cloud computing, and the rise of AI. In this evolving landscape, India has emerged as a key growth hub for data centre development, catering to both domestic and international requirements.�
“At Anant Raj, we are proud to contribute to this growth through our dedicated data center arm, Anant Raj Cloud. We have committed over ?10,000 crore to develop 307 MW of data center capacity, along with a range of cloud services, across key locations in Haryana,� he added.
Sustainability is also becoming a key focus as the sector grows. Many data centre players are adopting green building practices, energy-efficient technologies, and renewable energy integration to reduce their environmental impact.
Looking ahead, the industry’s next wave of expansion is likely to be shaped by rising demand for edge computing, increasing cloud adoption by enterprises, and the push for AI-integrated solutions. With improving infrastructure, policy support, and a focus on sustainability, India is well-positioned to emerge as a global data centre destination in the coming years.
Next Story
MoHUA Plans New Role for Smart City SPVs
In a significant policy move, the Ministry of Housing and Urban Affairs (MoHUA) has issued an advisory encouraging the continued use and repurposing of Special Purpose Vehicles (SPVs) formed under the Smart Cities Mission (SCM). This marks a step toward sustaining urban transformation by leveraging institutional capabilities and infrastructure developed over the past decade.Initiated in 2015, the Smart Cities Mission introduced a new era of urban planning in India, with each of the 100 selected cities forming SPVs under the Companies Act, 2013. These entities, jointly owned by state government..
Next Story
ADB Approves $110 Million Loan to Boost Skills in Gujarat
The Asian Development Bank (ADB) has approved a USD 109.97 million (Rs 9.27 billion) results-based loan to support Gujarat’s efforts to become a global industrial hub by developing a future-ready, skilled workforce.The funding will back the Gujarat skills development programme, led by the Department of Labour, Skill Development and Employment in collaboration with Kaushalya: The Skill University (KSU). The initiative aims to equip the workforce with advanced, industry-aligned skills to meet rising employment demand in high-growth sectors.According to ADB, the programme seeks to strengthen in..
Next Story
SDAL Tests Rudrastra UAV and Bhargavastra Defence System
Solar Defence and Aerospace Limited (SDAL) has successfully completed a key flight test of its indigenous Hybrid VTOL UAV Rudrastra at the Pokharan Firing Range, aligning with Indian Army performance benchmarks for mission adaptability, high endurance, precision engagement, and vertical take-off and landing (VTOL) capability.The trial marks a notable achievement in India’s Aatmanirbhar Bharat initiative, underscoring advancements in home-grown military technology. The Rudrastra UAV demonstrated a mission radius exceeding 50 km with uninterrupted video relay, a total operational range of over..