India’s data centre absorption rose to 427 MW IT in 2025, marking a 5 percent annual increase from 407 MW IT in 2024. Driven by AI adoption, cloud expansion, 5G rollout, and IoT demand, the sector is projected to triple to over 4 GW IT capacity by 2030.
India’s data centre industry witnessed a breakout year in 2025, with absorption hitting 427 MW IT, according to Savills India. The surge reflects the country’s accelerating digital transformation, powered by artificial intelligence, hyperscale cloud providers, and rising internet usage. Capacity additions more than doubled, reaching 387 MW IT compared to 191 MW IT in 2024, highlighting robust investment momentum.
Key highlights from the announcement include
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Data centre absorption rose to 427 MW IT in 2025, up 5 percent from 407 MW IT in 2024.
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Capacity additions more than doubled year-on-year, hitting 387 MW IT compared to 191 MW IT in 2024.
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Mumbai and Chennai led demand, accounting for 70 percent of total absorption, driven by hyperscalers.
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AI workloads, cloud adoption, 5G rollout, and IoT expansion were key growth drivers.
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India’s data centre market is projected to triple to over 4 GW IT by 2030, growing at a CAGR of 23 percent.
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The country now has close to 900 million internet users, fueling demand for storage and processing power.
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2025 marked a turning point, with mega announcements and capex plans focused on renewable energy integration.
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Analysts highlight that India’s data centre ecosystem is becoming a critical pillar for global technology firms.
The rapid growth underscores India’s emergence as a global data hub. With hyperscale investments, renewable energy integration, and rising AI workloads, the sector is poised for exponential expansion. For businesses and consumers alike, this momentum promises improved digital infrastructure, enhanced cloud services, and stronger support for India’s digital economy.
Sources: Zee Business, DT Next, TheBetterAndhra, CNBC TV18