India's data centre capacity more than doubled in 2025

New Delhi, Jan 8 India's data centre capacity additions more than doubled in 2025, reaching 387 MW IT -- from 191 MW IT added in 2024 -- thus marking a robust year-on-year growth of 103 per cent, a report showed on Thursday.

On the demand side, data centre absorption rose to 427 MW IT in 2025 from 407 MW IT in the previous year, registering a 5 per cent annual increase.

Mumbai and Chennai led absorption, together accounting for 70 per cent of the total at 427 MW IT, driven by hyperscalers amid rising cloud adoption, AI workloads, 5G rollout, and IoT demand, according to Savills India’s new report.

The market is projected to triple to over 4 GW IT by 2030, growing at a CAGR of 23 per cent.

“MW IT capacity” refers to the electrical power (Megawatts) a data centre facility can provide for its IT equipment.

Capacity additions surged 103 per cent year-on-year to 387 MW IT from 191 MW IT in 2024, pushing operational stock to 1,520 MW IT — a 34 per cent increase — led by Mumbai (34 per cent supply share), Delhi-NCR (20 per cent), and Chennai (19 per cent).

Hyperscale data centres dominate growth fuelled by global hyperscalers, domestic cloud players, and institutional investors, while enterprise colocation sustains demand alongside edge data centres in Tier 2 and 3 cities, said the report.

Emerging markets like Visakhapatnam, Kolkata (48 per cent CAGR projected), and Hyderabad (44 per cent CAGR) gain momentum from policy support, cost advantages, undersea cables, and low-latency needs for 5G/IoT.

“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. Rising cloud adoption by enterprises is accelerating demand from global hyperscalers and domestic cloud players, while emerging locations such as Visakhapatnam, backed by policy support and cost advantages are strengthening India’s attractiveness as a data centre destination,” said Srihari Srinivasan, Director and Lead Data Centre Services, Savills India.

Beyond major metros, the rollout of 5G and the growing use of mobile streaming and digital services are driving hyperscale demand across Tier 2 cities to meet local data and latency requirements. These developments reinforce India’s position as a fast-emerging global hub for scalable and long-term data centre investments, Srinivasan added.

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