India's data centre capacity additions more than doubled in 2025, reaching 387 MW IT as the country emerged as one of the world's fastest-growing markets for digital infrastructure. By 2030, India's total data centre capacity is projected to triple, reaching over 4 GW IT with a compound annual growth rate of 23 per cent.Market demand also saw a steady rise, with data centre absorption growing 5 per cent annually to 427 MW IT in 2025 from 407 MW IT the previous year. Total operational stock reached 1.5 GW IT by the end of 2025, with 33 per cent of that capacity dedicated to hyperscalers. "Mumbai maintained its lead, contributing 48 per cent to total absorption in 2025, followed by Chennai at 22 per cent and the Tier-II cities contributed 7 per cent of the total absorption. "With data centre absorption estimated at ~430 MW in 2025, driven by both enterprise and hyperscale demand, India's digital infrastructure growth is gaining strong momentum.

Source: Economic Times January 10, 2026 05:45 UTC