India’s data centre expansion is becoming as much a real estate and infrastructure story as it is a technology story. The country’s data centre footprint is projected to cross 101 million sq ft by 2030, driven by rising cloud adoption, artificial intelligence workloads, digital services and growing data consumption.
Read More | SpaceX and Nvidia Plan to Put AI Data Centres in Orbit
According to a report by ANAROCK Capital, India’s data centre footprint grew from just 0.6 million sq ft in 2007 to nearly 27 million sq ft in the first half of 2026. The development pipeline could push that figure beyond 101 million sq ft by the end of the decade. The scale of the expansion is also reflected in investment commitments, with more than $300 billion earmarked for data centre and related infrastructure projects.
India’s Data Centre Capacity Is Rising Rapidly
The increase in physical space is being matched by a sharp rise in computing capacity. India’s data centre capacity, which was below 1 GW a few years ago, crossed 1.8 GW in H1 2026 and is expected to exceed 6.7 GW by 2030, according to ANAROCK Capital.
That would more than triple the country’s capacity in roughly four years. The growth is being fuelled by the rapid adoption of cloud services, expanding digital platforms, AI computing requirements and the increasing volume of data generated by businesses and consumers.
Why Data Centres Are Becoming a Real Estate Story
Data centres are unlike conventional commercial properties. Their location and design depend heavily on access to infrastructure. Operators need large parcels of land, reliable and high-capacity power, advanced cooling systems, fibre connectivity and infrastructure capable of supporting continuous operations.
Read More | Singapore Unveils World’s First Biological Data Centre With 16 Million Human Neurons for AI Computing
“Data centres are highly infrastructure-intensive assets,” said Shobhit Agarwal, CEO, ANAROCK Capital, pointing to the growing requirement for land, power, cooling, connectivity and operational resilience. As the sector expands, competition is therefore shifting beyond securing customers. Operators also need to secure suitable sites and long-term access to the infrastructure required to run increasingly power-hungry facilities.
Power and Renewable Energy Will Be Critical
Power availability is likely to become one of the biggest considerations for India’s next wave of data centre development. Large facilities require substantial and dependable electricity supplies. At the same time, growing pressure to reduce the carbon footprint of digital infrastructure is increasing demand for renewable energy.
Read More | Great Nicobar May Host Green AI Data Centre Amid ₹92,000 Cr Infra Push
This is creating opportunities across the wider infrastructure ecosystem, including power generation, renewable energy, transmission, engineering, construction and cooling technologies. Strategically located data centres are likely to emerge around locations where land, electricity, connectivity and other essential infrastructure can be secured at scale.
Fibre and Cooling Infrastructure Gain Importance
Connectivity is another critical component of the data centre build-out. High-capacity fibre networks are needed to move large volumes of data between data centres, cloud platforms, businesses and users. Cooling is equally important because high-density computing equipment generates significant heat.
Read More | Vizag Data Centres Won’t Affect City’s Water Supply, Says Nara Lokesh
The expansion of AI workloads could make this requirement even more pronounced as operators deploy increasingly powerful computing systems. This means the data centre opportunity extends well beyond the buildings themselves. Engineering companies, construction firms, fibre providers, cooling specialists and energy companies are all positioned to benefit from the sector’s expansion.
India’s Data Centre Market Is Growing Faster Than the Global Average
ANAROCK estimates that India’s data centre capacity is expanding at around two to three times the global average, putting the country among the world’s fastest-growing data centre markets. Globally, data centre capacity crossed 92 GW in H1 2026 and is projected to exceed 210 GW by 2030. Global investment commitments reached around $3 trillion in the first half of 2026, reflecting the infrastructure spending associated with AI and digital services.
India’s growth forms part of this wider global build-out, but the country’s next phase will increasingly depend on how quickly physical infrastructure can keep pace with demand.
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.
