Context
India’s operational data centre capacity is projected to increase more than fivefold to 12 GW by 2030 from 2.2 GW in 2025, driven by rapid adoption of artificial intelligence (AI), hyper-scale cloud investments, and the expanding digital economy, according to a report by Wood Mackenzie (Global energy & Natural Resources Research firm).
What are Data Centres?
Data centres are specialised facilities that store, process, and manage digital data through servers, storage, networking, power, and cooling infrastructure, ensuring secure and reliable operations.
India’s AI-Driven Capacity
- AI-dedicated capacity is expected to rise from 275 MW (2025) to 6,546 MW by 2030.
- Data centre electricity demand is forecast to grow from 10 TWh (2025) to 191 TWh by 2040.
India’s Digital Economy
- Valued at ₹32 lakh crore in 2025, accounting for about 12% of GDP.
- Supported by more than 1.03 billion active internet users and around 22 billion monthly UPI transactions.
- India’s domestic AI market is projected to reach ₹11.7 lakh crore by 2032.
Regional Concentration & Expansion
- India generates nearly 20% of global data but accounts for only 3% of global data centre capacity, indicating significant growth potential. Major hubs include Mumbai, Bengaluru, Hyderabad, Noida, Chennai, and Visakhapatnam, with Ahmedabad and Pune emerging as new centres.
- Maharashtra and Tamil Nadu together currently account for about 65% of India’s installed IT load.
- Future investment is expected to expand into Andhra Pradesh, Telangana, Uttar Pradesh, and Karnataka.
- Global hyper-scalers such as Amazon Web Services (AWS) and Google, along with domestic operators like Adani Connex, are driving capacity additions; Adani Connex has announced a development pipeline of 2.6 GW.
| Important CTC from this article for UPSC What are Data centres? India’s Digital Economy |
Q. With reference to India's data centre and digital economy landscape, consider the following statements:
I. India's operational data centre capacity is projected to increase from 2.2 GW in 2025 to 12 GW by 2030.
II. AI-dedicated data centre capacity is expected to rise from 275 MW in 2025 to 6,546 MW by 2030.
III. India's digital economy is valued at ₹32 lakh crore in 2025, accounting for about 12% of GDP.
IV. Future investment in data centre infrastructure is expected to remain concentrated in Maharashtra and Tamil Nadu alone.
Which of the statements given above is/are correct?
(a) I, II and III only
(b) II, III and IV only
(c) I, III and IV only
(d) I, II, III and IV
Answer: (a) I, II and III only
Explanation:
• Statement I is Correct: Operational data centre capacity is projected to rise from 2.2 GW in 2025 to 12 GW by 2030.
• Statement II is Correct: AI-dedicated capacity is projected to grow from 275 MW to 6,546 MW over the same period.
• Statement III is Correct: India's digital economy is valued at ₹32 lakh crore, or about 12% of GDP, in 2025.
• Statement IV is Incorrect: While Maharashtra and Tamil Nadu currently hold ~65% of installed IT load, future investment is expected to expand into A.P., Telangana, U.P., and Karnataka, not remain confined to the two states.