India’s Data Centre Capacity to Reach 12 GW by 2030, Wood Mackenzie Report Says

India’s operational data centre capacity is projected to expand from 2.2 GW in 2025 to 12 GW by 2030 at a compound annual growth rate of 40 per cent, according to a report released by research firm Wood Mackenzie on Monday. The next phase of development is expected to expand across several states, including Karnataka, Andhra Pradesh, Telangana, and Uttar Pradesh.

The report highlighted that artificial intelligence-dedicated capacity will lead this expansion, growing nearly 24-fold from 275 MW to 6,546 MW over the same period. This surge is being driven by increasing demand from hyperscale cloud providers, enterprise digitalisation, and artificial intelligence workloads. Wood Mackenzie noted that India’s data centre market is entering a structural growth phase, positioning the country as one of the most attractive infrastructure investment opportunities in the Asia-Pacific region.

India’s digital economy was valued at Rs 32 trillion in 2025, contributing approximately 12 per cent of Gross Domestic Product while serving over 1.03 billion active internet users and processing about 22 billion Unified Payments Interface transactions each month. Furthermore, the domestic AI market is projected to reach Rs 11.7 trillion by 2032, escalating demand for high-performance computing infrastructure.

Souhardya Pal, Research Associate at Wood Mackenzie, stated that the convergence of hyperscale capital, AI workload growth, and a decade of policy support have created conditions for India to rival any market in the Asia-Pacific region. Pal added that the question for developers and investors is no longer whether to enter India, but where and how.

Reliable and cost-competitive power has become the defining factor in data centre development, overtaking land and capital as the industry’s primary constraint. Data centre electricity demand in India is expected to grow 20-fold by 2040 from 10 TWh in 2025, eventually accounting for 7 per cent of the nation's total electricity demand.

While Maharashtra and Tamil Nadu currently account for around 65 per cent of installed IT load, emerging markets across Karnataka, Telangana, Andhra Pradesh, and Uttar Pradesh are attracting significant commitments. Global hyperscalers including Amazon Web Services and Google, alongside domestic operators such as AdaniConnex—which has announced a development pipeline of 2.6 GW—are actively committing to these markets.