India's data centre industry targets 7.5 GW capacity by 2030

India's rapidly expanding digital economy is creating significant demand for data centres, which form the backbone of cloud computing, artificial intelligence, digital payments and online services. According to estimates cited by CRISIL Ratings, the country's data centre capacity could reach approximately 7.5 GW by March 2030, compared with its current level.

The expansion is being driven by the growing adoption of generative AI, increasing enterprise cloud requirements, video streaming, digital transactions and the rising volume of data generated by connected devices. AI applications require substantial computing power and specialised infrastructure, making modern data centres an important part of the technology ecosystem.

Major locations such as Mumbai, Hyderabad and Visakhapatnam are expected to play an important role in this expansion. These cities offer different advantages in terms of connectivity, infrastructure, business activity and access to power.

However, the expansion also presents challenges. Data centres require continuous electricity, advanced cooling systems, reliable internet connectivity and significant capital investment. Access to land and sustainable energy sources will also influence how quickly projects can be completed.

If these investments materialise, India's data centre sector could create opportunities for infrastructure companies, cloud service providers, technology professionals and businesses developing AI-powered products.