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India Story

India 's data centre industry is entering a "decade of hyper-growth," with capacity projected to expand nearly 10-fold by 2035. Driven by the 5G rollout, AI workloads, and strict data localisation laws, the market is transitioning from a niche IT segment to a cornerstone of national infrastructure. We expect capacity to grow up by 10X in next ten years, which will be defined by four major shifts. 

AI Revolution

AI workloads consume 3–6x more power than traditional servers. Analysts expect 50% of all data centre capacity to be AI-related within ten years.

Data Sovereignty

The Digital Personal Data Protection (DPDP) Act, 2023 and RBI mandates are forcing global firms to store and process Indian data locally.

Tier-2 & Tier-3 Expansion

While 90% of capacity is currently in Tier-1 cities (Mumbai, Chennai), "Edge" data centres are rapidly emerging in cities like Ahmedabad, Pune, and Vizag to support low-latency services.

Hyperscaler Dominance

 

Global giants like Amazon Web Services, Google, and Microsoft are investing billions to build large-scale “AI hubs” across India. These facilities will power advanced AI workloads and cloud infrastructure, reflecting strong confidence in India’s digital growth. As a result, India is quickly emerging as a key global hub for next-generation technology and innovation.

Structural & Real Estate Impact

This expansion is set to fundamentally reshape India’s real estate landscape. India will require an additional 50 million sq. ft. of real estate by 2030, dedicated solely to data centre campuses—marking the rise of a new, infrastructure-led asset class. At the same time, evolving ownership structures such as Data Centre REITs and Infrastructure Investment Trusts (InvITs) are transforming how hyperscale assets are financed and managed, drawing deeper institutional participation. Sustainability is also becoming central to this shift; with data centres projected to consume nearly 3% of India’s total electricity by 2030, the integration of renewable energy and long-term power purchase agreements (PPAs) is no longer optional. Within this rapidly evolving ecosystem, nextGenSites enables access to strategically located land parcels for data centre and green energy developments—addressing a critical, often overlooked foundation of digital infrastructure.

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