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India's data centre capacity set for 5x surge by 2030

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India's data centre capacity set for 5x surge by 2030

Business News Tech AI India's data centre capacity set for 5x surge by 2030

By March 2030, India’s data centre capacity is projected to soar to 7.5 gigawatts, fueled by escalating demand from global hyperscalers and the emergence of generative artificial intelligence. However, challenges such as power infrastructure and project execution timing loom large. To mitigate these risks, pre-commitments and long-term contracts are essential, alongside the industry's flexibility to adapt to changing computing needs, which will dictate its future profitability.

India's data centre industry is poised for an unprecedented investment boom, with installed capacity expected to increase five-fold to around 7.5 gigawatts (GW) by March 2030, attracting investments of more than Rs 3 lakh crore over the next four financial years, Crisil Ratings said in a report on Tuesday. The expansion, fuelled by generative artificial intelligence (GenAI), enterprise digitalisation and rising data consumption, is set to transform the country's digital infrastructure landscape. However, the industry's ability to translate demand into sustainable returns will depend critically on timely power connectivity, regulatory clearances and disciplined project execution.

"Nearly half of the upcoming capacity is already committed under long-term contracts, limiting speculative development and reducing offtake risk," Crisil Ratings said. "Upfront tie-ups with hyperscalers , driven by cloud adoption and compute-intensive GenAI workloads, provide revenue certainty from the outset. " Strong demand from global hyperscalers, driven by cloud adoption and increasingly compute-intensive GenAI workloads, is also supporting investment decisions and reducing offtake uncertainty. India's competitive cost structure is adding to its appeal as a data centre destination.


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