India is rapidly emerging as one of the world’s fastest-growing data centre markets, underpinned by the shift towards cloud-native, AI-enabled and energy-efficient digital infrastructure. According to global real estate consultancy Savills India, the country added 387 MW IT of new data centre capacity in 2025, more than double the 191 MW IT added in 2024, marking a robust year-on-year growth of 103%.
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% annual increase. This growth continues to be led by hyperscalers, with steady participation from enterprise colocation players. Additionally, the rollout of 5G, proliferation of IoT and rising demand for low-latency applications are accelerating the development of edge data centres across Tier II and Tier III cities.
Mumbai maintained its lead, contributing 48% to total absorption in 2025, followed by Chennai at 22% and the Tier-II cities contributed 7% of the total absorption. On the supply side, Mumbai led the pack with 34% of its contribution to overall supply, followed by Delhi-NCR (20%) and Chennai at 19%.
Key Stats: 2025 vs 2024 and Forecasts
|
|
2025
|
2024
|
Y-o-Y Change
(2025 vs 2024)
|
|
Supply (MW IT)
|
387
|
191
|
103%
|
|
Stock (MW IT)
|
1,520
|
1,132
|
34%
|
|
Absorption (MW IT)
|
427
|
407
|
5%
|
Source: Savills India Research
Note: The stock includes operator-owned facilities, including hyperscalers, enterprises, and a mix of both.
“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. 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,” said Srihari Srinivasan, Director & Lead Data Centre Services, Savills India.
DC Supply and Absorption
|
City
|
Supply (MW IT & % Contribution)
|
Absorption (MW IT & % Contribution)
|
||
|
|
2025
|
2024
|
2025
|
2024
|
|
Ahmedabad
|
–
|
1(1%)
|
1 (0.5%)
|
10(2%)
|
|
Bengaluru
|
22 (6%)
|
–
|
32 (7%)
|
4(1%)
|
|
Chennai
|
72 (19%)
|
105(55%)
|
93 (22%)
|
41(10%)
|
|
Delhi-NCR
|
79 (20%)
|
–
|
48 (11%)
|
6(2%)
|
|
Hyderabad
|
–
|
13(7%)
|
11 (3%)
|
55(14%)
|
|
Mumbai
|
132 (34%)
|
54(28%)
|
203 (48%)
|
216(53%)
|
|
Kolkata
|
28 (7%)
|
–
|
6 (1%)
|
–
|
|
Pune
|
54 (14%)
|
18(9%)
|
1 (0.5%)
|
41(10%)
|
|
Tier-II Cities
|
–
|
–
|
32 (7%)
|
34(8%)
|
|
Overall
|
387
|
191
|
427
|
407
|
Source: Savills India Research
Note: Tier-II cities include Lucknow, Chandigarh, Patna, Raipur, Jaipur, Bhubaneswar, Cochin, Vizag and Coimbatore.
Of the total operational stock of 1.5 GW IT as of 2025, stock dedicated for hyperscalers accounted for 33%, while that for enterprises stood at 8% and a mix of both hyperscalers and enterprises accounted for the remaining 59%.
Operator-based Existing DC Capacity and Forecasts
|
City
|
Existing Stock in MW IT as of 2025
|
Projected Stock Growth (CAGR)
2026-2030
|
|
Ahmedabad
|
4
|
26%
|
|
Bengaluru
|
102
|
20%
|
|
Chennai
|
243
|
18%
|
|
Delhi-NCR
|
191
|
23%
|
|
Hyderabad
|
58
|
44%
|
|
Mumbai
|
707
|
22%
|
|
Kolkata
|
31
|
48%
|
|
Pune
|
178
|
7%
|
|
Tier-II Cities
|
6
|
70%
|
|
Overall
|
1,520
|
23%
|
Source: Savills India Research
India’s data center market is poised for exponential growth, with total capacity projected to triple and reach over 4 GW IT by 2030, growing at a CAGR of 23%. Annual average capacity additions are expected to accelerate to 350-450 MW IT between 2026 and 2030, nearly double the 150-200 MW IT added annually during 2022 to 2024.
Capacity additions across India’s key data center markets are projected to grow between 7% and 70% from 2025 to 2030, signaling a period of rapid expansion.
Kolkata is expected to lead with a 48% CAGR, owing to its strategic position as a gateway to Eastern and Northeastern India and the upcoming undersea cable landing station. Hyderabad (44%) and Ahmedabad (26%) are also witnessing strong momentum, backed by growth in IT, ITeS, and manufacturing sectors. Bengaluru, with a projected CAGR of 20%. Mumbai and Chennai, already the largest data center markets, continue to grow steadily at CAGR of 22% and 18% respectively, supported by strong cable landing infrastructure and demand from hyperscale players.
Outlook for 2026
The Data Centre market is set to witness a significant growth in 2026, with capacity additions expected to surpass 600 MW IT, while absorption expected to comfortably surpass 500 MW IT. Hyperscale data centres are likely to drive growth through rising cloud adoption and expanding SaaS and AI workloads, while 5G, IoT, and latency-sensitive demand are accelerating the expansion of edge data centres in Tier-II and III cities such as Vizag, Bhubaneswar, Patna, Lucknow, Jaipur, Kochi, Coimbatore, Madurai, Raipur and Hubli.