In the next 5-6 years too, the majority of the primary DC markets are set to witness significant influx of new supply. These Tier I markets are likely to witness 3,000-3,700 MW of DC capacity additions during 2025-2030, a four-fold rise compared to the new supply during 2020-2025, the report further added.
It said though Mumbai will continue to dominate the overall DC market, relatively smaller growth markets such as Hyderabad, Bengaluru and Pune are likely to see multifold growth in inventory levels. Hyderabad is likely to see significant traction and emerge as a major hub, in addition to cities such as Mumbai, Chennai & Delhi NCR.
“With a DC capacity of about 1,263 MW across the top seven markets, India’s data centre industry has witnessed significant scaling up in the last few years. India is becoming a global DC hotspot, fueled by rapid digitalization, data localization norms and strong government support. As this growth trajectory continues, India’s DC capacity is likely to cross 4,500 MW in the next 5-6 years, translating into a real estate footprint of 55 million sq ft,” said Jatin Shah, Chief Operating Officer, Colliers India.
The rise in proportion of larger-sized DCs (>20 MW) — from 42% during 2020 to 56% as of April 2025 — indicates heightened traction in large hyperscale data centres, especially in recent years, the report added.
“In the coming years, the demand for high density rack configurations & advanced computing infrastructure will further rise. DC investments of about $20-25 billion are likely to materialise over the course of the next 5-6 years,” said Vimal Nadar, National Director & Head of Research, Colliers India.