As India races toward a digital future, its data centre industry is experiencing explosive growth that’s reshaping the country’s technological landscape. The numbers tell a remarkable story of transformation that feels almost too good to be true. In just five years, India’s data centre capacity is expected to more than double, jumping from 3.31 gigawatts in 2025 to an impressive 6.69 gigawatts by 2030.
This growth surge isn’t happening by accident. Companies have poured over $32 billion into data centre infrastructure in just two years, betting big on India’s digital potential. The industry crossed the important 1-gigawatt milestone in 2024 and shows no signs of slowing down, with annual growth rates projected at nearly 16 percent through 2032.
Mumbai leads the charge as India’s data centre capital, while cities like Chennai, Hyderabad, and Delhi are quickly catching up. The government is rolling out the red carpet with attractive incentives, including 50 percent land-value rebates and full exemptions on electricity charges. These policies aim to position India as a global data centre powerhouse.
However, this rapid expansion creates a significant challenge that keeps energy planners awake at night. Data centres consumed 13 terawatt-hours of electricity in 2024, representing less than one percent of India’s total power demand.
India’s data centres consumed 13 terawatt-hours in 2024, creating unprecedented challenges for energy planners nationwide.
But here’s where things get interesting and slightly concerning. By 2030, power consumption is projected to surge nearly fivefold to 57 terawatt-hours, representing 2.6 percent of the nation’s total electricity demand. This dramatic increase in energy needs raises important questions about grid capacity and sustainability. The surge in AI chip deployment is forcing operators to transition from traditional air-based cooling to liquid cooling solutions to manage the exponentially higher power consumption.
The annual growth in power demand is estimated at 28 percent through 2030, a pace that would challenge any electrical grid system. Most data centres currently rely on grid power, supplemented by backup contracts, but this approach may need serious rethinking. Globally, data centres already account for 1% of greenhouse gas emissions, highlighting the environmental implications of this rapid expansion.
The boom is driven by cloud adoption, 5G rollout, and artificial intelligence applications that require massive computing power. While the economic benefits are clear, with colocation revenue alone expected to reach $4.93 billion by 2030, the energy infrastructure must evolve quickly to support this digital revolution sustainably.
