Indian Data Centre Industry to Reach 9 GW Capacity by 2032 with $50 Billion Investments

Indian data centre industry is expected to see a ninefold jump in capacity to 9 GW by 2032, with $50 billion investments from hyperscalers and conglomerates. The growth is driven by surging data traffic, data localisation, and AI adoption, with estimates suggesting $8 billion in leasing revenue and a capex of $30 billion by 2030.

The Indian data centre industry is poised for a significant expansion, with estimates suggesting a ninefold jump in capacity to 9 GW by 2032. This growth is driven by substantial investments from global tech giants and Indian conglomerates, totaling over $50 billion over the next five to seven years Data nation: 9GW capacity seen by 2032 on $50 billion flows^[1].

Market research firms, including JLL and Jefferies, project that the industry's capacity will increase from the current 1 GW to around 9 GW, with JLL expecting a staggered investment of $35-50 billion over the next seven years. Jefferies estimates that India's data centre capacity will reach 8 GW by 2030, requiring a capital expenditure (capex) of $30 billion and creating downstream opportunities in real estate, electrical and power systems, and network infrastructure, among other areas Data nation: 9GW capacity seen by 2032 on $50 billion flows^[1].

The growth is fueled by several key factors, including surging data traffic, data localisation laws, and the increasing demand for artificial intelligence (AI). Google's $15-billion investment to build the Vizag AI hub is one of the largest foreign direct investments (FDI) in India’s history, while Amazon Web Services plans to invest $8.3 billion in building its Mumbai cloud region Data nation: 9GW capacity seen by 2032 on $50 billion flows^[1].

Moreover, local companies such as Reliance Industries, AdaniConnex, Tata Consultancy Services, and Bharti Airtel have also committed to creating infrastructure to support the data needs of 1.4 billion Indians. These investments will make India one of the fastest-expanding data centre regions globally, with a projected 17% annual growth rate Data nation: 9GW capacity seen by 2032 on $50 billion flows^[1].

Data consumption in India has surged from 8 exabytes in FY17 to 229 exabytes in FY25, driven by over-the-top (OTT) platforms, digital payments, social media, and e-commerce. The data localisation law and expected AI adoption are anticipated to be the next significant drivers for data centre growth in India Data nation: 9GW capacity seen by 2032 on $50 billion flows^[1].

Prateek Jhawar, managing director and head of infrastructure and real assets investment banking at Avendus Capital, notes that India has the potential to offer an incremental 5 GW of data centre capacity in the medium term, provided it can address the AI infrastructure needs at a broader Southeast Asia level. Achieving a comprehensive build-out of this magnitude would require an investment of roughly $150 billion, encompassing core data centre infrastructure, high-performance compute hardware, energy systems, and network connectivity Data nation: 9GW capacity seen by 2032 on $50 billion flows^[1].

Prashant Tarwadi, director at India Ratings & Research (Ind-Ra), highlights that data centres aiming to process AI workloads are increasingly located at remote sites, offering advantages such as cheap land, abundant area for future expansion, lower energy costs, and favorable climate, along with favorable tax policies Data nation: 9GW capacity seen by 2032 on $50 billion flows^[1].

However, nearly 60% of planned expansion in India is at a nascent stage, and developers will calibrate supply in line with demand. Timely expansion of power infrastructure, especially distribution systems, will be crucial to ensuring power connectivity for super-large data centre parks Data nation: 9GW capacity seen by 2032 on $50 billion flows^[1].