India’s data centre industry has added 258 megawatts (MW) of new IT capacity in the first six months of 2026, marking a 59% growth from the same period in the last financial year.
In a report, real estate consultancy Savills India stated, “The growth highlights the rising demand for cloud computing, artificial intelligence (AI), digital services and enterprise data storage across the country.”
The report said India added the fresh capacity between January and June 2026, compared with 162 MW during the corresponding period in 2025.
These additions pushed the country’s total operational data centre stock to around 1.8 gigawatts (GW), reinforcing India’s position as one of the fastest-growing digital infrastructure markets globally.
Also Read: India’s Data Centre Capacity Set to Quadruple by 2030: Rubix Data Sciences Report
Hyperscalers Continue to Drive Demand
Large cloud operators, commonly known as hyperscalers, remained the biggest force behind market growth.
The report said hyperscale facilities account for 36% of India’s operational data centre capacity, while enterprise-focused facilities represent 8% and edge data centres 1%. The remaining 55% serves a mix of hyperscale and enterprise customers.
The report noted that demand from hyperscalers & large enterprises stays atop despite many businesses shifting workloads to cloud platforms.
Industry analysts witnessed growing interest from emerging Neo-Cloud providers, which are evaluating India as a key market due to its competitive operating costs and expanding digital ecosystem.
India Eyes More Than 7 GW Capacity by 2030
Savills forecasts India’s data centre capacity will expand nearly fourfold to exceed 7 GW by 2030. The growth is expected to be supported by continued investments from established operators, new infrastructure funds and developers entering the market.
The outlook also aligns with rising AI adoption, cloud migration and increasing demand for local data storage. Government-backed digital initiatives and growing enterprise technology spending are further supporting long-term capacity expansion.
India’s data centre sector is moving beyond a niche infrastructure play and becoming an important part of the country’s digital economy. The next phase of growth will depend not only on investment appetite but also on how quickly power, land and connectivity challenges can be addressed across emerging data centre markets.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
