India's data centre industry is entering a phase of rapid expansion, driven by digital transformation, cloud adoption, and the growing demand for artificial intelligence. The sector is emerging as a critical pillar of India's digital economy.
As per a report, the country's data centre capacity is projected to increase from 1.5 GW in 2025 to 6.5 GW by 2030, reflecting significant investments in digital infrastructure and computing capabilities.
India currently hosts 271 data centres, with nearly 65% concentrated in five key hubs—Mumbai, Delhi NCR, Bengaluru, Hyderabad, and Chennai.
These cities continue to attract investments due to strong connectivity, skilled talent, and reliable infrastructure.
While data centres support cloud services, enterprise IT, financial systems, and digital platforms, the rapid adoption of AI is dramatically increasing demand for high-performance computing and storage, resulting in higher electricity consumption.
As AI workloads continue to expand, balancing computational growth with energy efficiency and sustainability will become a key challenge.
Understanding the energy demands of AI-powered data centres will be crucial for shaping India's next phase of digital infrastructure development.
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