The demand for data centres in India continues to rise, driven by factors such as the increasing adoption of cloud computing, the expansion of big data, the Internet of Things (IoT), Artificial Intelligence (AI), and the rapid growth of e-commerce and digital transformation initiatives. In 2024, India witnessed an absorption of 407 MW IT capacity and the addition of 191 MW IT capacity across key cities, according to Savills India, a leading global real estate advisory firm.
This demand was fuelled by hyperscalers, BFSI (Banking, Financial Services, and Insurance), IT & ITeS, and service sectors, all of which heavily rely on data centre operators for colocation and related services. India is experiencing a surge in data centre land transactions, driven by growing demand and expansions by data centre operators and hyperscalers acquiring land across key cities. In 2024, over 200 acres of land were acquired in Mumbai, Hyderabad, Pune, Chennai and Bengaluru.
India is rapidly emerging as a global data centre hub. The current momentum positions India as a promising global data centre hub. We project a strong demand for data centres in India in 2025, with an estimated demand of over 450 MW IT across major cities, while supply addition is expected to reach 600 MW IT during the same period. The increasing penetration of 5G and the rise in mobile application usage are driving demand for edge data centres in Tier-II and Tier-III cities such as Bhubaneswar, Patna, Lucknow, Jaipur, Kochi, Vizag, Coimbatore, Madurai, Raipur, and Hubli. Meanwhile, dominant Tier-I cities continue to grow. By 2030, we expect data centre stock to reach 3,400 MW IT across major cities.” – Srihari Srinivasan, Director & Lead Data Centre Services, Savills India.
Data centre supply and absorption in 2024
| City | Supply (MW IT & % Contribution) | Absorption (MW IT % Contribution) |
| Ahmedabad | 1(1%) | 10(2%) |
| Bengaluru | – | 4(1%) |
| Chennai | 105(55%) | 41(10%) |
| Delhi-NCR | – | 6(2%) |
| Hyderabad | 13(7%) | 55(14%) |
| Mumbai | 54(28%) | 216(53%) |
| Pune | 18(9%) | 41(10%) |
| Other Tier-II & III Cities | – | 34(8%) |
| Overall | 191 | 407 |
