India’s data center capacity has expanded at a remarkable pace, paralleling the country’s broader digital ecosystem growth. Between 2019 and 2023, capacity nearly doubled from 350 MW to around 835 MW, accompanied by an increase in total area from 6.2 million sq. ft. to 13 million sq. ft. This surge is primarily concentrated in four major cities—Mumbai, Chennai, Bengaluru, and Delhi-NCR—which collectively house 87% of India’s live data center inventory.

Driving this trend are global cloud providers, fintech companies, e-commerce platforms, and OTT services requiring robust server infrastructure to handle massive data processing. Hyperscale facilities, in particular, are on the rise, with top operators establishing large campuses to serve both domestic and international client bases. Additionally, India’s thriving BFSI segment and tech-savvy population further boost the need for low-latency, high-availability data centers.

Policies emphasizing data localization and digital sovereignty add more momentum, compelling global entities to keep sensitive data on Indian soil. As internet penetration and 5G rollouts accelerate, analysts predict continued capacity growth, with further expansions expected to double the existing numbers by 2026.