India's data centre boom could create 1 lakh jobs by 2030, but skills gap remains a key challenge

Rising investments, AI adoption and rapid expansion into Tier-II cities are creating strong demand for skilled professionals, prompting calls for closer industry-academia collaboration to build a future-ready workforce for India's growing data centre ecosystem.

India's rapidly expanding data centre industry is emerging as a major employment generator, with the sector expected to create nearly one lakh engineering jobs by 2030. However, industry experts caution that the shortage of skilled professionals could become a significant hurdle to sustaining the country's digital infrastructure growth.

According to NLB Services, India's installed data centre capacity is projected to increase from about 1.5 GW currently to nearly 6.5 GW by 2030. The market is expected to exceed USD 22 billion in value, supported by cumulative investment commitments of more than USD 126 billion. Despite this rapid expansion, the availability of qualified talent continues to lag industry demand, with only 15-20% of applicants currently meeting the minimum skill requirements for modern data centre roles.

Coinciding with World Youth Skills Day on July 15, the company highlighted the need to strengthen India's skilling ecosystem to ensure the workforce is prepared to support the next phase of digital infrastructure development.

AI and infrastructure skills drive new career opportunities

NLB Services noted that modern data centres increasingly require expertise across two key domains. The first is AI and software infrastructure, where rising AI adoption is driving demand for professionals skilled in cloud operations, AI infrastructure engineering, automation, DevOps, platform engineering and MLOps. With AI workloads expected to account for nearly 30% of India's total data centre capacity, these specialised skills are becoming essential.

The second area is physical infrastructure, where demand is rising for professionals such as Critical Facilities Engineers, Liquid Cooling Engineers, Energy Optimisation Specialists, AI Infrastructure Operations Engineers and Power Systems Experts. As AI infrastructure becomes more energy-intensive, organisations are looking for engineers capable of managing complex cooling, electrical and facility management systems.

Industry calls for stronger skilling initiatives

According to the company, the widening gap between traditional education and evolving industry requirements remains a major concern. Skills in AI infrastructure, automation, cloud technologies, HVAC engineering and critical facility management are still inadequately represented in conventional engineering and vocational programmes.

NLB Services believes bridging this gap will require stronger collaboration between industry, academia and policymakers through specialised certification programmes, apprenticeships and practical exposure to modern infrastructure technologies.

Commenting on the opportunity, Sachin Alug, CEO, NLB Services, said: "India's data centre and AI infrastructure expansion represents far more than an infrastructure story, it is a nation-building opportunity for our young workforce. As the country accelerates its digital transformation, the sector is creating demand for a new generation of professionals with expertise spanning AI infrastructure, cloud operations, automation, power systems, and critical facilities management. This is not simply about filling jobs; it is about building a workforce capable of powering India's digital economy for decades to come. Realising this opportunity will require stronger collaboration between industry, academia, and policymakers to ensure our education and skilling ecosystems evolve as rapidly as technology itself. If we invest in the right skills today, India's youth will not just participate in the next phase of digital growth, they will lead it."

Tier-II cities and diversity to shape future workforce

The expansion of data centre investments beyond established hubs such as Mumbai, Chennai, Hyderabad, Bengaluru and Pune is also expected to create new employment opportunities in Tier-II cities including Jaipur, Kochi, Mohali and Indore. Lower operating costs, improving digital infrastructure, 5G deployment and data localisation requirements are driving this geographic shift, enabling skilled professionals to access technology careers closer to their hometowns.

The company also sees an opportunity to improve gender diversity within the sector through focused skilling initiatives, inclusive hiring practices, returnship programmes and flexible career pathways. According to NLB Services, developing a broader and more diverse talent pool will be critical to supporting India's long-term ambitions of becoming a global digital infrastructure hub.