Synopsis- Data centers are emerging as an important sector in India’s Digital economy. India is striving to become a global hotspot over the next few years excelling in AI, cloud computing and IoT. This article highlights top 6 cities emerging as data center hotspots in India.
India’s current data center capacity is around 1263MW across top 7 cities and is likely to cross 4500MW within the next 4-5 years. The data center plays a key role in India’s digital future, likely to attract investments of approximately USD 20-25 billion in the next 5-6 years. The growth is drawing in global data center companies, Indian billionaires, and even luxury real estate developers. Currently, India is ranked at 9th position for installed data capacity as of September, 2025. These are the top 6 cities emerging as data center hotspots in 2025-
1. Mumbai & Navi Mumbai
The 3rd biggest data center market in Asia, it holds 44% of market share with total capacity of 500–570 MW. Projects include Sify technologies limited, Yotta, capitaLand, AdaniConneX venture.
2. Chennai
Chennai holds 2nd highest data center with existing capacity of 200‑201 MW. Chennai Data Center Industry Leaders include Sify Technologies Limited, STT Telemedia, Reliance Industries, NTT Data, Nxtra Data Limited.
3. Delhi-NCR
Noida and Gurgaon are the data centers in North India. It covers a market size of 14% and total existing capacity of 111 MW. Major players include Yotta, NTT DATA, Sify, Nxtra (by Airtel), and AdaniConneX.
Also read: Top 7 Commercial Hotspots in India Promising High Rental Yields in 2025
4. Bengaluru
Major data centre presence due to its large IT infrastructure. It has a market share of 7-8% and 78 MW existing capacity. Projects companies: ESDS, Sungard, Sify, Whitefield Nxtra Data, CapitaLand, Evoque, STT, NTT have their data centres in India.
5. Hyderabad
IT presence, 6% market share in data centre with 48‑50 MW. Major data center providers include Microsoft, Amazon Web Services (AWS), and ST Telemedia Global Data Centres (STT GDC).
6. Pune
IT industry as its economy capacity 90‑100 MW, 5% market share and major players include like Nxtra, STT, Web Werks, Microsoft Azure.
These locations are prime hubs where 60% of data centres in India are in Navi Mumbai, Noida, Gurgaon, Bangalore and Hyderabad. CAGR growth rate of 25% over the past few years, major global tech companies like amazon web services, microsoft, google are collectively investing over $2 billion in expanding their data centers footprints in India contributing to rapid expansion in Industry. The data localisation policies alone are projected to drive the construction of over 100 new data centres by 2025.
Future of Data Center Projections of India (2025-2030)
- Global market revenues are expected to reach over $627- $690 billion by 2030, supported by significant investments in next generation infrastructure.
- Compound annual growth rate is expected to be 8.75% to 11.8% between 2025-2030.
- AI data center market major engine growth is predicted to reach $933.76 billion by 2030 with a CAGR of 31.6%.
- Capacity projection is 82 GW in 2025 and will rise to 219 by 2030.
- Artificial intelligence: AI work loads could drive about 70% of total data center capacity demand by 2030.
Conclusion
India is becoming a global data center hotspot due to its massive data demand outpacing its limited capacity, India is creating vast growth potential fueled by AI, 5G and digital services. Leaving a footprint by creating a significant gap and opportunity for expansion. The digital personal data protection act of 2023 regulates the domestic data storage building hyperscalers data centers within the country.
Written by Soumya M
