India may need additional 50 million sq. ft. real estate for data centres by 2030: Deloitte report

India is expected to require an additional 45–50 million sq. ft. of real estate and 40–45 terawatt-hours (TWH) of incremental power by 2030 to meet the accelerating demand for Artificial Intelligence (AI) data centres, according to Deloitte's latest report titled “Attracting AI Data Centre Infrastructure Investment in India.” The report cites India’s cost competitiveness, renewable energy potential, and geographic advantage. However, it highlights the urgent need to address infrastructure, talent, and regulatory gaps to position the country as a global AI hub. Deloitte outlines six key enablers for building a world-class AI ecosystem: real estate, power & utilities, connectivity, compute infrastructure, skilled talent, and a conducive policy framework.
Key recommendations include assigning data centres a distinct category under the National Building Code, recognising them as essential services under the Essential Services Maintenance Act, and expediting approvals through dedicated data centre facilitation units. It also calls for dedicated data centre zones, relaxed data localisation norms, and regulatory alignment, such as amending provisions in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, and exempting data centres from surveillance clauses under the Telecommunication Act, 2023. Deloitte further suggests implementing safe harbour rules for hosting service providers and introducing ‘data embassies’ to attract global investments. However, it cautions that rapid data centre growth may strain India’s power grid, underscoring the need for higher generation capacity and greater integration of renewables. Connectivity challenges, including low fibre penetration in rural areas and inconsistent high-speed internet, persist as bottlenecks. Partner at Deloitte India, Ms. Neha Aggarwal, emphasised that scalable infrastructure, advanced computing systems, and supportive policy reforms will be essential for India to become a leading destination for AI-powered data centre development.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.