New Delhi, 13 April 2026: India’s data center market is expected to double to $22 billion by 2030. Currently, the market is estimated to be worth around $10 billion by 2025. This estimate has been given in a new report presented by Vestian published on Monday.

According to the report, India is rapidly emerging as a major data center hub in the Asia-Pacific region due to rising investor confidence and strong growth rates. With an investment of approximately $30 billion, the country’s data center capacity is expected to reach 1.7 to 2.0 GW by the end of 2026, the report said. This capacity is expected to increase to 4 to 5 GW by 2030.

India is becoming an attractive destination for data infrastructure development due to the country’s rapidly growing digital economy, increasing number of internet users and huge investments by hyperscaler companies. Vestian CEO Srinivas Rao said, “India’s data center sector is rapidly transforming. While our share of global capacity is currently low, India has immense potential to become a leader in AI infrastructure.” He further said that single-window clearance, 20-year With tax exemptions, GST benefits and incentives extended till 2047, India is set to emerge as a global data center and AI hub.

According to reports, about $13-15 billion of investment will come in this sector between 2020 and 2024, of which the share of foreign institutional investors is about 80 percent. India is also very competitive in terms of construction expenditure. The cost of building a data center here is $6-7 million per megawatt, which is much lower than developed Asian countries like Singapore and Japan. This is helping to attract significant investment.

Currently, India’s data center infrastructure is mainly concentrated in a few major metros. Mumbai has been the largest data center hub in the country, while Chennai has emerged as a major global data gateway due to its strong submarine cable penetration. Moreover, Hyderabad, Bengaluru and Pune are growing as important secondary hubs due to their strong IT ecosystem, land availability and low operating costs. Cities like Ahmedabad, Kochi, Jaipur and Visakhapatnam are also known for their superior digital infrastructure, are becoming more and more popular due to favorable state policies and increasing demand