India Data Centre Capacity to Hit 3.6 GW by 2030 Amid AI Boom

India’s data centre sector anticipates significant expansion, with total capacity expected to reach between 3 and 3.6 gigawatts (GW) by 2030. This growth is primarily fueled by the accelerating adoption of artificial intelligence and the escalating cloud infrastructure demands from major hyperscalers.

Global technology giants like Amazon Web Services, Microsoft, and Google are poised to command nearly 90% of market demand by 2030, a substantial increase from their current 60% share. While some companies have announced plans for capacities reaching 6 to 8 GW, expert assessments suggest a more realistic operational capacity.

Key Capacity Projections & Costs

• Projected Capacity by 2030: 3 GW to 3.6 GW
• Current Installed Capacity: 1.3 GW to 1.4 GW
• Realistic Operational Capacity by 2030: Approximately 2.8 GW, even with plans aiming for 3.4 GW to 3.6 GW.
• Traditional Colocation Cost: ₹44 crore to ₹46.6 crore per megawatt (excluding IT hardware).
• AI Workload Facility Cost: ₹48 crore to ₹54 crore per megawatt, a 10% to 15% increase due to enhanced power and cooling requirements.

The discrepancy between planned and operational capacity stems from practical challenges impeding infrastructure development. Securing power connections alone requires an 18-month timeframe, while specialized backup generation equipment can take up to two years to procure and commission.

These bottlenecks significantly impact the commissioning of new facilities, underscoring the complexities involved in scaling data centre operations. Furthermore, the development of infrastructure tailored for AI operations inherently incurs higher costs compared to standard data centres.

Investment Outlook Shifts to Execution

Despite these execution hurdles, the data centre pipeline maintains strong momentum, creating long-term opportunities for associated industries. Companies in the power, electrical equipment, and cooling sectors are crucial for supporting these high-density facilities.

Investors in this sector should therefore prioritize tracking the actual commissioning timelines of announced projects rather than solely focusing on initial capacity commitments. The ability of developers to effectively navigate and overcome delays related to power and equipment will ultimately determine the revenue generation potential of new sites leading up to 2030.