New Delhi [India], August 2 : India's data centre capacity could rise to around 3-3.6 GW by 2030, with hyperscalers and emerging AI-focused cloud players expected to become the dominant drivers of new demand, according to a report based on expert assessment cited by Axis Capital. However, execution and supply-chain constraints could keep actual operational capacity below the 6-8 GW targets publicly announced by industry players.
The report estimated that hyperscalers could account for around 90 per cent of data centre demand by 2030, compared with the current 60 per cent share, as companies such as Amazon Web Services, Microsoft and Google expand capacity and emerging neo-cloud and large language model hosting requirements gather pace. Enterprise demand, meanwhile, is expected to remain broadly flat in absolute terms.
India's installed data centre capacity currently stands at around 1.3-1.4 GW. Third-party colocation facilities account for the largest share at 60-65 per cent, followed by hyperscaler captive or leased capacity at 25-30 per cent. Enterprise and edge data centres account for around 8-10 per cent and 2-3 per cent, respectively.
The report noted that publicly announced capacity targets of 6-8 GW by 2030 appear aggressive. A more realistic estimate is 3.4-3.6 GW of planned capacity by mid-2030, while actual operational capacity could be closer to 2.8 GW. This reflects challenges around execution, power availability, equipment supply and construction timelines.
The data centre expansion pipeline is nevertheless gaining momentum. Around 900 MW to 1.2 GW of capacity had already been awarded in the last six to seven months of calendar 2026, although an award does not immediately translate into operational capacity. The report said it typically takes at least 32-36 months to roll out even the first phase of a project.
Supply-chain bottlenecks could remain a key constraint. Hyperscaler-grade backup generation equipment from leading global suppliers is reportedly booked roughly two years ahead, while shortages of EPC contractors and manpower and power-sanction timelines of around 18 months could slow project execution.
Capital intensity is also rising as AI-enabled facilities require more expensive infrastructure. Traditional colocation builds cost around Rs 44-46.6 crore per MW, excluding IT hardware, while AI-enabled infrastructure costs around Rs 48-54 crore per MW, representing a 10-15 per cent premium.
India's data centre capacity could reach 7-8 GW by 2035 if currently announced projects are fully realised, pointing to significant long-term opportunities across power, cooling, backup infrastructure, construction and electrical equipment, the report said.