New Delhi: India’s data centre capacity is projected to expand fivefold to 8GW by 2030, driven by surging data consumption, rapid cloud adoption, regulatory data localisation mandates, and the growing integration of artificial intelligence (AI), according to a sectoral update by Jefferies.
The report estimates that this expansion will require USD 30 billion in capital investment, pushing data centre leasing revenues up by a similar multiple to reach USD 8 billion by the end of the decade.
India’s colocation data centre capacity — where companies lease infrastructure from operators — has already grown fivefold to 1.7GW, with occupancy levels at 97%, highlighting robust demand.
Mumbai and Chennai account for nearly 70% of the current installed capacity, with Mumbai alone representing around half, owing to its proximity to undersea cable landing stations and the concentration of financial sector clients.
By 2030, Bharti Airtel, Reliance, and Adani Enterprises (through AdaniConneX) are expected to collectively hold 35–40% of India’s total data centre capacity. AdaniConneX and Reliance together are likely to lead about one-third of planned capacity additions. The top five operators currently command a 90% market share, led by NTT GDC with roughly 20%.
The study also notes that AI adoption will significantly boost demand, as AI servers consume five to six times more power and require advanced liquid cooling systems compared to conventional servers. Additionally, policy measures such as the Digital Personal Data Protection (DPDP) Act, 2023, and the RBI’s data localisation norms are encouraging enterprises to store and process data domestically.
Jefferies further estimates that the USD 30 billion investment will generate opportunities across multiple sectors — including real estate (USD 6 billion), electrical and power systems (USD 10 billion), racks and fit-outs (USD 7 billion), cooling systems (USD 4 billion), and network infrastructure (USD 1 billion).
