India data centre capacity to reach 7.5 GW by FY30, says Crisil
By Rohit SharmaMarkets Analyst, Peepals Business
Representative image: ElasticComputeFarm / Pixabay
Crisil expects India's data centre capacity to grow about fivefold to 7.5 GW by March 2030, drawing over Rs 3 lakh crore; power supply is the main risk.
What Happened
India's installed data centre capacity is set to grow about fivefold to roughly 7.5 gigawatts (GW) by March 2030, drawing more than Rs 3 lakh crore of investment over the next four financial years, rating agency Crisil said in a report released on Tuesday, 3 November 2026. Crisil said the growth is being driven by computing for generative artificial intelligence (AI), companies moving more of their work online, and rising data use. It added that nearly half of the upcoming capacity is already committed under long-term contracts, and that about three-quarters of the roughly 6 GW in the pipeline will be built in Visakhapatnam, Mumbai and Hyderabad.
Key Facts
- Capacity: about 7.5 GW by March 2030 (the end of FY30), a roughly fivefold rise, according to Crisil.
- Investment: more than Rs 3 lakh crore over the next four financial years.
- Pipeline: about 6 GW of upcoming capacity, three-quarters of it in Visakhapatnam, Mumbai and Hyderabad.
- Contracts: nearly half of the upcoming capacity is already tied up under long-term contracts; contract terms have reportedly lengthened to 15 to 20 years from 10 to 12 years.
- Drivers named by Crisil: generative AI computing, enterprise digitalisation and growing data consumption.
- Costs: Crisil says building a data centre in India costs around one-fifth less than in several competing Asia-Pacific markets.
- Risks: timely power connections, grid and transmission upgrades, regulatory approvals and disciplined execution; Crisil also warns that more capacity and the bargaining power of hyperscalers (the very large cloud companies) could put pressure on rents.
Why It Matters
A data centre is a building full of servers that store data and run software for companies, governments and apps. For businesses in India, more local data centre capacity means faster services, the option of keeping data inside the country, and access to the computing power needed for AI without sending everything abroad.
The long-term contracts matter for investors and lenders. When half the planned capacity already has a customer signed up for 15 to 20 years, the risk of building empty halls falls sharply. That is why rating agencies such as Crisil track the sector closely: the projects are large, borrow heavily and depend on steady rental income.
The biggest constraint is electricity. A data centre runs around the clock and needs a reliable, large power supply, often with a share of renewable energy. Crisil's warning about grid connectivity and transmission points to a practical bottleneck for states that want these projects. Visakhapatnam appearing alongside Mumbai and Hyderabad shows that newer locations can compete with established hubs when they can offer land and power.
Peepals calculation: If the more than Rs 3 lakh crore is spread over about 6 GW (6,000 MW) of new capacity, that works out to roughly Rs 50 crore per megawatt (3,00,000 ÷ 6,000). Spread evenly over four financial years, the investment averages about Rs 75,000 crore a year (3,00,000 ÷ 4). Three-quarters of the 6 GW pipeline means about 4.5 GW in Visakhapatnam, Mumbai and Hyderabad together (6 × 0.75). Our calculation from the reported figures.
| Item | Crisil figure |
|---|---|
| Capacity by March 2030 | About 7.5 GW |
| Growth | About fivefold |
| Investment over four financial years | More than Rs 3 lakh crore |
| Upcoming pipeline | About 6 GW |
| Share in Visakhapatnam, Mumbai, Hyderabad | About three-quarters |
| Capacity under long-term contracts | Nearly half |
Impact
Short-term: Developers with signed long-term contracts are likely to keep building; those still looking for tenants face more competition and possible pressure on rents.
Long-term: If power and approvals keep pace, India gains a large base of local computing for AI and cloud services, while the three leading cities become major power consumers that will need new transmission lines.
Who is affected: Data centre developers and their lenders, cloud and AI companies, state power utilities and transmission companies, and businesses that buy cloud services in India.
What to watch next: Progress on power connections and transmission for projects in Visakhapatnam, Mumbai and Hyderabad, and whether rents come under pressure as capacity is added.
Key Takeaway
Crisil expects India's data centre capacity to grow about fivefold to 7.5 GW by March 2030 with more than Rs 3 lakh crore of investment, with power supply the main risk.
Questions and Answers
How much data centre capacity will India have by 2030, according to Crisil?
About 7.5 GW by March 2030, roughly five times today's level, Crisil said in its report on 3 November 2026.
How much investment will India's data centre sector draw?
More than Rs 3 lakh crore over the next four financial years, according to Crisil.
Which cities will get most of the new data centres?
About three-quarters of the roughly 6 GW of upcoming capacity is planned in Visakhapatnam, Mumbai and Hyderabad.
What is the biggest risk to the expansion?
Power. Crisil says growth depends on timely power connections, grid and transmission upgrades and regulatory approvals.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Rohit Sharma, Markets AnalystCovers Markets Watch and more for Peepals Business. All stories by Rohit Sharma
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Rohit Sharma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
