India’s data centre infrastructure has expanded from 375 MW in 2020 to over 1,500 MW in 2025, according to figures released by the Ministry of Electronics and Information Technology. The fourfold increase reflects accelerating digital transformation and surging demand for data storage and AI compute.
Mumbai and Navi Mumbai dominate the landscape with 790 MW of operational capacity—more than half the national total. Chennai ranks second at 305 MW, followed by Bengaluru (182 MW), Hyderabad (152 MW), and Delhi-NCR/Noida (76 MW). Other cities including Pune and Kolkata contribute a combined 15 MW.
The growth trajectory aligns with government initiatives to democratize technology development and strengthen digital infrastructure. Union Budget 2026-27 introduced a tax holiday until 2047 for eligible foreign cloud providers using India-based data centers for global operations. The policy aims to anchor high-value digital infrastructure within the country and reinforce India’s position in global digital value chains.
Globally, data centers accounted for more than one-fifth of greenfield project values in 2025, with announced investments exceeding $270 billion according to UNCTAD. Rapid AI compute demand and data-intensive services are intensifying international competition to attract such infrastructure.
Four submarine cable systems are currently being commissioned at various Cable Landing Stations, with three additional systems under planning by telecom service providers. Government policies focus on ensuring safe, trusted cyberspace with sufficient in-country data storage capacity. To support AI development, approximately 38,231 GPUs have been onboarded through 14 empaneled service providers and data centers under government initiatives.
