Blitz Bureau
NEW DELHI: India’s share of the global data centre market is projected to nearly double from 2–3 per cent in FY26 to roughly 5 per cent by FY30 as AI‑led workloads, exponential growth in digital consumption, and cloud adoption drive rapid capacity expansion, a report said on July 1.
The report from KPMG in India highlighted that India’s data centre market growth is underpinned by strong demand visibility, large-scale investments and supportive policy frameworks.
The market is expected to grow from roughly $1.7 billion in FY26 to roughly $6.8 billion by FY30, reflecting a significant expansion in market size and global relevance.
Installed capacity has more than tripled since FY19 to about 1.9 gigawatts in FY26, with an additional pipeline of about 4.5 gigawatts expected over the next five years, the report added.
Growth is increasingly being driven by hyperscale cloud providers, global content platforms and AI-first companies, marking a shift from traditional enterprise and telecom-led demand.
AI and high-performance computing workloads are expected to play a defining role, with such workloads projected to account for roughly 55 per cent of total capacity by FY30.
The sector is witnessing a structural shift towards high-density, AI-ready infrastructure, with advanced cooling systems, higher power requirements and GPU-intensive architectures.
India offers structural advantages including low construction costs, cost-effective power and a large IT and AI talent pool, strengthening its competitive position globally.
