India’s data centre industry is preparing for a major AI-driven expansion. A new report by Avendus Capital said the country could deploy 650,000 to 700,000 GPUs over the next five years. The growth could create an investment opportunity worth nearly USD 23 billion.
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AI Demand Driving Data Centre Growth
The report said rising AI adoption, cloud services, and local large language models (LLMs) are pushing companies to build more AI infrastructure across India. India’s total data centre capacity is expected to rise from 1.6 GW in 2025 to nearly 5 GW by 2030. This marks a strong annual growth rate of 26%.
Mumbai Leads India’s Data Centre Market
Mumbai will remain India’s biggest data centre hub. The city is expected to hold nearly half of the country’s existing and upcoming capacity. Hyderabad and Chennai are also seeing fast growth, especially through large hyperscale tech campuses.
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AI Factories Need More Power and Space
The report said AI-ready data centres need advanced cooling systems and high-density infrastructure. To support future AI demand, India may require an additional 45 to 50 million square feet of data centre space and 40 to 45 terawatt-hours of extra power by 2030.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future. She has also conducted high-profile interviews and podcasts with industry leaders, bringing sharp analysis and accessible storytelling to a wide audience.
