India’s data centre sector has evolved from a niche technology segment into a mainstream real estate and infrastructure asset class. Driven by explosive digital adoption and massive data consumption, the country’s data centre real estate footprint is projected to reach over 101 million square feet by 2030, backed by $300 billion in investment commitments, according to the latest report by ANAROCK Capital titled “Data Centre: The Blueprint of The Digital Fortress in India.”
The sector’s growth trajectory underscores a dramatic expansion: from a modest 0.6 million sq ft in 2007, India’s operational footprint reached 27 million sq ft across 164 data centres in the first half of 2026.
Key Market Highlights: Footprint, Capacity & Investment
| Market Metric | Current Status (H1 2026) | Projected Target (2030) | Growth Factor |
| Real Estate Footprint | 27 million sq ft | 101+ million sq ft | ~3.7x expansion |
| IT Power Capacity | 1.8+ GW | 6.7+ GW (development pipeline) | Over 3x growth |
| Investment Pipeline | $300+ Billion (committed) | Part of $3,000 Billion global commitments | Fast-track scaling |
| Global Capacity Share | 92+ GW (Global Total) | 210+ GW (Global Target) | India growing 2–3x global average |
A Specialized Intersection of Real Estate, Tech, and Power
Unlike conventional commercial office buildings or industrial warehouses, data centres represent infrastructure-intensive real estate that demands specialized resources.
“The projected 101 Mn sq ft data centre footprint highlights the sheer physical scale of the real estate opportunity,” said Shobhit Agarwal, CEO of ANAROCK Capital. “Unlike conventional office or industrial developments, data centres are highly infrastructure-intensive assets, requiring large land parcels, substantial power capacity, advanced cooling systems, robust connectivity, and high levels of operational resilience.”
“This projected footprint doesn’t represent just additional built-up space requirements – this is a specialised asset class at the intersection of real estate, technology and infrastructure,” Agarwal added.
Regional Breakdown: Mumbai and Chennai Lead the Cluster Growth
While demand is spreading across key digital hubs, development remains concentrated in cities with established connectivity, submarine cable landings, and robust power infrastructure:
- Mumbai (MMR): Maintains a dominant lead with 54 operational data centres accounting for 812 MW of IT capacity (nearly 50% of India’s total).
- Chennai: Holds the second position with 25 data centres providing 298 MW of capacity.
- Delhi-NCR: Operates 18 facilities with a combined capacity of 179 MW.
- Hyderabad: Operates 12 data centres generating 178 MW of capacity.
- Bengaluru: Operates 18 facilities delivering 137 MW of capacity.
Driving Forces: AI Workloads and Regulatory Support
The surging demand for data centre space is anchored by two critical catalysts:
- The AI Boom: Dubbed the “factories of the AI age,” data centres are restructuring their physical design to support intensive computing needs. Artificial Intelligence workloads are projected to account for 70% of total data centre demand by 2030.
- Policy Incentives: Government infrastructure status grants data centre operators access to long-tenure financing (up to 12 years) at favorable interest rates (9.5%–10.5%). Coupled with the Digital Personal Data Protection Act, 2023, and proposed tax holidays through 2047 for foreign cloud providers, domestic data hosting demand continues to accelerate.
As India’s internet user base scales past 950 million, the availability of suitable land parcels, renewable energy access, and reliable high-speed connectivity will dictate where the next phase of this $300-billion infrastructure expansion unfolds.
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