Today, it is one of the largest economies in the world, but India began its digital transformation journey decades ago. This was also the time when the digital infrastructure industry began taking its first tentative steps in the country. Since then, the industry has grown, to keep pace with the country’s economic evolution. This Independence Day, let us take a closer look at the role of the cloud and data center industry in driving India’s growth.
Where are we today, and where are we going next?
As per a JLL report titled India Data Center Market Dynamics, India’s data center capacity surged past the 1 GW mark at the end of 2024, and stood at around 1030 MW (live IT load) of which 993 MW was occupied. The same report also says that India’s data center capacity could go up to 1.8 GW by the end of 2027. According to the report, there was a sharp 51 percent year-on-year rise in demand in H2 2024 of about 122 MW, which was met with supply. Mumbai accounted for nearly half the supply during this period. By the end of 2027, there will be a capacity addition of 795 MW, with Mumbai and Chennai accounting for 64 percent of new capacity additions.
Another report titled The digital backbone: Data center growth prospects in India by Colliers, finds that India’s data center market could see capacity across the top seven cities exceed 4,500MW or 4.5GW by 2030, which in turn is likely to translate into real estate footprint of around 55 million sq ft in the next 5-6 years. It further says that this is likely to attract investments to the tune of US$ 20-25 billion.
How did we get here?
India is a nation of over 1.4 billion tech-savvy people, who are using a variety of apps to cater to even the most everyday and mundane things like ordering groceries, booking taxis, train tickets, and doctor’s appointments, making cashless payments, and maintaining government documents. And then, of course, there are the more exciting apps for social media, OTT content, and online shopping.
The country, which has one of the largest number of mobile phone users in the world, is generating data at an unprecedented rate, and its digital infrastructure must keep up pace with the ever increasing demand for data storage, processing and high-performance computing. This is where cloud and data center providers, both homegrown and international, are playing a key role, virtually co-authoring this new chapter in the story of independent India.
Betting big on India: Global players remain bullish
 Surajit Chatterjee, MD & Head, Data center – India, CapitaLand Investment “India is where the next digital decade will be stress-tested – diverse, demanding, decisively modern,” says Surajit Chatterjee, Managing Director & Head, Data Centre, India, CapitaLand Investment Ltd. (CLI), A global real asset manager, that recently signed a Memorandum of Understanding (MoU) with the government of the western Indian state of Maharashtra, indicating its plans to invest over Rs. 19,200 crores (~US$ 2.19 billion) by 2030, to drive its growth in Mumbai and Pune. “Global players like CapitaLand add scale, enhance sophistication, and embrace sustainability,” he says, adding that their vision is to build digital infrastructure that is “secure by default, green by design, and cost-efficient at scale – Made in Bharat, Benchmarked Globally.” |
 Manoj Paul, MD, India, Equinix Another renowned international player with a significant presence in India is Equinix, a global digital infrastructure company with more than 270 data centers worldwide in over 35 countries around the world. “India remains one of the most exciting markets for data center providers because of its strong demand for digital services arising out of economic growth, a young digital-first population, and business-friendly government policies,” says Manoj Paul, Managing Director, India, Equinix. “With the rapid adoption of AI, cloud, 5G, digital financial transactions, e-commerce and digitization of business operations, the demand for secure and scalable connectivity to ecosystems has increased significantly. Equinix is investing in India and expanding our carrier-neutral, globally connected data center footprint along with highly differentiated interconnection services to contribute to the nation’s Digital India vision.” |
 Vipin Shirsat, MD – India, PDG “India’s digital transformation is accelerating at an unprecedented pace, driven by cloud adoption, artificial intelligence, and the expanding digital economy,” says Vipin Shirsat, Managing Director, India, Princeton Digital Group (PDG), a renowned data center provider across APAC, that has recently made a huge investment towards expanding its presence in India. “Our strategic focus includes developing advanced data center ecosystems powered by renewable energy and aligned with global sustainability standards, while also contributing to the growth of India’s technology talent pool. With our recent US$ 1 billion investment and 230 MW capacity expansion across Mumbai and Chennai, we are helping position India as a global center for AI excellence.” |
Homegrown heroes keep the flag flying high!
But it isn’t just international players, even domestic companies are playing an important role in India’s digital transformation.
 Kalyan Muppaneni, Founder & CEO, Pi Datacenters “My vision for India’s data center industry is to safeguard data sovereignty by ensuring national data remains within our borders,” says Kalyan Muppaneni, Founder and CEO, Pi Data Centers. “I aim to drive the growth of homegrown data centers in tier 2 and tier 3 cities, powered by green energy, to create employment and skill-building opportunities for youth. With world-class technology and sustainable infrastructure, India can emerge as a secure and globally competitive digital hub. |
 Anil Nama, CIO, CtrlS Datacenters “As India’s homegrown datacenter pioneers, we are the unseen force driving the nation’s digital future—designing and delivering the critical infrastructure that underpins every byte of progress,” says Anil Nama, CIO, CtrlS Datacenters. “Our vision goes beyond building datacenters; we are laying the digital bedrock for a self-reliant, secure, and sustainable India. With deep roots in local expertise and a global mindset, we aim to position India not just as a participant, but as a global leader in AI, data sovereignty, innovation, and digital trust.” |
With the industry projected to double, even triple in size in just a few years, there is space and scope for growth for all players, which will ultimately contribute to the nation’s economic development.
