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The Economic Times
India's data centre capacity may reach 3-3.6 GW by 2030, hyperscalers to drive growth: Axis Capital
A recent report forecasts that India's data center capacity may grow to between 3-3.6 GW by 2030, largely influenced by major hyperscalers, which could control up to 90% of demand. Although current targets of 6-8 GW seem ambitious, operational capacity is expected to lag due to various challenges including infrastructure costs and supply chain issues. The report indicates an ongoing trend in AI-related infrastructure expansion, despite enterprise demand remaining flat.
MonitorConfidence: MediumShort term horizonExecution risk: High
Published 2 Aug 2026, 06:30 UTC3 min read
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Summary
TL;DR
- Projected data center capacity in India to reach 3-3.6 GW by 2030.
- Hyperscalers expected to drive 90% of data center demand.
- Current operational capacity stands at approximately 1.3-1.4 GW.
- Challenges include supply chain constraints and increasing costs.
- AI-enabled infrastructure demands more expensive setups.
Interesting facts
- Current operational capacity could be as low as 2.8 GW due to challenges.
- Third-party colocation facilities contribute 60-65% of data center capacity.
- AI-enabled facilities have a 10-15% higher construction cost compared to traditional setups.