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India's data centre capacity to triple by 2029, report reveals

Published by YuToday Staff

0 views · 1 hour ago · 3:52 read · September 2, 2026

India’s digital infrastructure is undergoing a rapid expansion, with data centre capacity projected to surge from 1.6 GW in mid-2026 to 6 GW by 2029. A report by JLL India highlights this unprecedented growth, driven by increasing demand for digital services and infrastructure. The transformation will reshape the country’s tech landscape and attract significant investment.

Key takeaways

India’s data centre capacity is set to triple by 2029, reaching 6 GW.
Mumbai, Hyderabad, Visakhapatnam, and Chennai will lead the expansion.
The industry is expected to attract over $110 billion in investments.
The growth will create jobs and stimulate ancillary industries.

India to become Asia's fastest-growing data centre hub

India’s data centre industry is experiencing a historic surge, with capacity expected to triple by 2029. According to JLL India’s latest report, the country’s data centre market will grow from 1.6 GW in June 2026 to 6 GW by 2029, making it the fastest-growing digital infrastructure market in Asia. This expansion reflects the rising demand for data storage and processing, fueled by digital adoption across sectors like finance, healthcare, and e-commerce. The report underscores India’s potential to become a global leader in digital infrastructure, attracting investments and creating jobs. Cities like Mumbai, Hyderabad, Visakhapatnam, and Chennai are expected to lead this growth, with data centres becoming a key driver of economic development.

Mumbai, Hyderabad, and Chennai to drive data centre expansion

Four major Indian cities are poised to become the epicentres of the country’s data centre boom. Mumbai, already a financial hub, is expected to see a significant increase in data centre capacity due to its robust infrastructure and connectivity. Hyderabad, known for its tech-friendly policies, will attract investments with its growing IT ecosystem. Visakhapatnam, with its strategic coastal location, offers advantages for data resilience and connectivity, while Chennai’s established industrial base and power reliability make it a prime destination. The report highlights how these cities are leveraging their unique strengths to become key players in India’s digital transformation. Local governments are also stepping up with incentives to accelerate development in these regions.

Economic impact: $110 billion investment on the horizon

The rapid expansion of India’s data centre industry is expected to attract over $110 billion in investments by 2029, according to JLL India. This influx of capital will not only boost the digital economy but also create thousands of jobs across construction, operations, and technology sectors. The report suggests that the growth will stimulate ancillary industries, including real estate, power supply, and telecommunications. As data centres become a cornerstone of India’s digital economy, the government and private sector are collaborating to ensure sustainable development. Policies aimed at easing regulatory hurdles and improving infrastructure are expected to further enhance the sector’s appeal to global investors.

Challenges and opportunities in India's data centre growth

While the outlook for India’s data centre industry is overwhelmingly positive, challenges remain. Power reliability, land availability, and regulatory frameworks are critical factors that could impact the pace of expansion. The report notes that addressing these challenges will require coordinated efforts between the government, private sector, and local communities. However, the opportunities far outweigh the risks. India’s young population, growing digital literacy, and increasing internet penetration present a vast market for data-driven services. As the country positions itself as a global digital hub, stakeholders are optimistic about overcoming these hurdles to unlock the full potential of this sector.

Global implications of India's digital infrastructure surge

India’s data centre expansion is not just a domestic milestone but a significant development for the global tech landscape. As the country strengthens its digital infrastructure, it could emerge as a preferred destination for multinational corporations seeking to expand their operations in Asia. The report suggests that India’s growth could reduce reliance on traditional data centre hubs in the West and East Asia, diversifying the global digital ecosystem. This shift could also lead to increased collaboration between Indian and international firms, fostering innovation and technological advancements. The country’s strategic location and growing talent pool make it an attractive partner for global tech initiatives.

What happens next

As India’s data centre industry continues to expand, stakeholders are focusing on addressing infrastructure challenges and leveraging policy incentives to accelerate growth. The next phase will likely see increased investments in green energy-powered data centres and the development of specialized zones to support the sector’s rapid expansion. With global tech firms eyeing India as a key market, the coming years will be critical in shaping the country’s role in the digital economy.