Hyderabad emerges key data centre hub

India market to cross $22 bn by 2030 amid digital surge: Vestian

Property Pulse

Hyderabad is emerging as a key data centre hub in India, as the country’s data infrastructure market is projected to more than double from about $10 billion in 2025 to $22 billion by 2030, according to a report by Vestian.

The city is gaining traction among data centre operators due to its strong IT ecosystem, availability of land and competitive operating costs, positioning it as an important growth centre alongside Bengaluru and Pune.

India’s data centre growth is part of a broader global expansion, with installed capacity expected to exceed 100 GW by 2030, driven by rising adoption of cloud computing, artificial intelligence and data-intensive technologies.

“India’s data centre sector is rapidly transforming on the back of strong policy support and rising digital demand,” said Shrinivas Rao, ceo, Vestian.

India currently has around 164 data centres with an operational capacity of about 1.4–1.6 GW. An additional 700 MW is under construction, with 1–1.2 GW in the pipeline, indicating strong near-term expansion.

Installed capacity is expected to reach about 1.7–2.0 GW by 2026 and scale up to 4–5 GW by 2030, reflecting the pace of growth in the sector.

The report attributes this expansion to rising internet and telecom subscribers, increasing enterprise cloud adoption, and the growing use of AI and high-performance computing. The rollout of 5G has further accelerated demand, with average monthly wireless data consumption crossing 25 GB per user.

Investment activity remains robust, with the sector attracting about $13–15 billion between 2020 and 2024, while announced projects worth $60–70 billion are expected over the next five years.

India’s cost advantage is also driving interest, with construction costs estimated at $6–7 million per MW, significantly lower than in mature Asia-Pacific markets such as Singapore and Japan.

City-wise, Mumbai remains the largest hub with about 49 per cent of operational capacity, followed by Chennai and NCR. However, cities such as Hyderabad, Bengaluru and Pune are emerging as key secondary hubs.

Hyderabad currently accounts for about 5 per cent of capacity but is expected to see steady growth as operators expand into emerging markets.

The report also highlights growing interest in Tier-II cities such as Ahmedabad, Kochi, Jaipur and Visakhapatnam, where capacity of about 60–80 MW is expected to cross 100 MW by 2026.

With rising AI adoption and continued digital transformation, Hyderabad and other emerging hubs are expected to play a larger role in India’s evolving data centre landscape.

DATA HUB

• India market to reach $22 bn by 2030. 

• 164 data centres across the country. 

• 1.4–1.6 GW current operational capacity. 

• 700 MW under construction, more planned. 

• $60–70 bn investment pipeline announced. 

• Hyderabad emerging as key growth hub. 

• Capacity to reach 4–5 GW by 2030.