India is set to significantly expand its third-party data centre capacity, aiming to double it from approximately 1,250 megawatts to around 2,500 megawatts by March 2028. This ambitious growth plan reflects the country’s increasing demand for digital infrastructure, driven by the rapid adoption of cloud computing, e-commerce, and enterprise digital services. The expansion is expected to strengthen India’s position as a major hub for data storage and processing in the Asia-Pacific region.
The estimated investment required for this capacity enhancement is around ₹90,000 crore over the next three years. This funding will be directed towards constructing new data centre facilities, upgrading existing infrastructure, and integrating advanced technologies to improve operational efficiency and energy management. A focus on renewable energy adoption and sustainable practices is anticipated to support India’s broader climate goals while meeting the growing power demands of data-intensive operations.
Third-party data centres play a crucial role in India’s digital ecosystem, providing enterprises with scalable, secure, and cost-effective solutions without the need for heavy capital expenditure. The planned capacity doubling will enable businesses to expand their digital operations, enhance data security, and reduce latency, benefiting sectors such as finance, healthcare, education, and government services.
The expansion also aligns with government initiatives to promote digitalisation, attract foreign investment, and develop smart cities. By increasing data centre capacity, India aims to support the surge in internet traffic, cloud adoption, and emerging technologies such as artificial intelligence, machine learning, and big data analytics.
This strategic development is expected to create new employment opportunities, encourage technology innovation, and boost the overall competitiveness of India’s IT infrastructure sector. With careful planning and investment, the country is poised to become a leading destination for data centre services globally.
