India’s rapidly growing data centre ecosystem is emerging as a major new driver of steel demand, with industry experts projecting that the country’s total data centre capacity will exceed 4,500 MW by 2030. Backed by investments estimated between $20–25 billion, the sector is expected to witness a threefold expansion in built-up area, according to recent reports. This unprecedented growth is being driven by rising digital consumption, increasing cloud adoption, and government initiatives such as Digital India and data localisation policies. Major global and domestic players—including Amazon Web Services (AWS), Google, Microsoft, AdaniConneX, and Yotta—are investing in hyperscale facilities across urban hubs like Mumbai, Chennai, Bengaluru, and Hyderabad.
For the steel industry, this expansion presents a significant opportunity. The construction of data centres relies heavily on structural steel for building frameworks, racks, cable trays, raised floors, cladding systems, and cooling infrastructure supports. The demand is also shifting toward prefabricated steel structures and Pre-Engineered Building (PEB) systems that offer faster deployment and scalability—key requirements for the dynamic data centre market.
Industry observers note that the trend could catalyse a rise in value-added steel consumption, especially high-strength and corrosion-resistant grades. Steel manufacturers are also exploring partnerships with construction and tech firms to offer integrated solutions tailored to the unique specifications of data centres.
As India positions itself as a global data hub, the steel sector is expected to play a foundational role in supporting this next wave of digital infrastructure.
