India’s Data Centre Capacity Set for Five-Fold Surge to 7.5 GW by 2030, Attracting Over US$ 31.68 Billion: Crisil Ratings
- IBEF
- November 4, 2026
India’s installed data centre capacity is expected to increase five-fold to around 7.5 gigawatts (GW) by March 2030, according to a report by Crisil Ratings. The expansion is set to attract investments of more than Rs. 3 lakh crore (US$ 31.68 billion) over the next four financial years. It is being fuelled by generative artificial intelligence (GenAI), enterprise digitalisation and rising data consumption. Nearly half of the upcoming capacity is already committed under long-term contracts, while upfront tie-ups with hyperscalers provide revenue certainty from the outset. Existing data centre facilities are operating at around 90% utilisation, and more than 95% of capacity currently under construction has already been contracted. Contract tenors have also lengthened to 15-20 years from 10-12 years earlier, enhancing cash flow visibility.
India’s competitive cost structure is adding to its appeal as a data centre destination. Director of Crisil Ratings Mr. Anand Kulkarni stated that development costs are around one-fifth lower than in several competing Asia-Pacific markets, owing to competitive land, construction and labour costs. Combined with lower power tariffs, this translates into rentals that are 30-35% lower than in peer markets. The ability to develop large, renewable-powered campuses also aligns well with the sustainability goals of hyperscalers. Nearly three-fourths of the approximately six GW of upcoming capacity is expected to be concentrated in Visakhapatnam, Mumbai and Hyderabad, making timely grid connectivity and transmission capacity augmentation critical. Hyperscalers’ share of leased capacity is expected to rise to 75-80% by FY30, from 60-65% in FY26.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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