Digital India / India’s Data Centre Capacity grew fourfold to 1500 MW in 5 Years: IT Ministry
·3 months ago·3 min read
Key Points
India’s digital infrastructure is witnessing rapid expansion as the country’s data centre capacity has increased fourfold over the last five years. According to the Ministry of Electronics and Information Technology, the capacity has grown from 375 MW in 2020 to more than 1500 MW by 2025.
New Delhi, Mar 19: India has recorded significant growth in its digital infrastructure, with the country’s data centre capacity increasing more than four times in the past five years. According to the Ministry of Electronics and Information Technology (MeitY), India’s data centre capacity has expanded from 375 Megawatt (MW) in 2020 to over 1500 MW by 2025.
The expansion aligns with the government’s focus on strengthening the country’s digital ecosystem and improving the delivery of digital services across sectors such as finance, healthcare, education, e-commerce, and governance. The initiative is also part of the broader vision of transforming India into a digitally empowered economy.
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Industry data suggests that most of the country’s data centre capacity is concentrated in major metropolitan cities. Mumbai currently leads with an operational capacity of 790 MW, making it the largest data centre hub in India. Chennai follows with 305 MW, while Bengaluru has around 182 MW of capacity. Hyderabad accounts for about 152 MW, and the Delhi-NCR and Noida region together have around 76 MW.
The government is also focusing on strengthening international connectivity and digital infrastructure through submarine cable networks. At present, four submarine cable systems are being commissioned at various Cable Landing Stations across the country. In addition, three more submarine cable systems are currently under planning by telecom service providers, with proposals submitted to the Department of Telecommunications.
Recent policy measures announced in the Union Budget 2026-27 aim to further boost investment in this sector. One of the key proposals includes a tax holiday until 2047 for eligible foreign cloud service providers that use India-based data centres for global operations. This move is expected to attract international technology companies and encourage large-scale investments.
Globally, data centres are becoming a crucial driver of economic growth and investment. According to the United Nations Conference on Trade and Development (UNCTAD), announced investments in data centres crossed USD 270 billion in 2025, accounting for more than one-fifth of global greenfield project values.
With rising demand for artificial intelligence computing and data-driven services, India is positioning itself as a major global hub for digital infrastructure in the coming years.
The expansion aligns with the government’s focus on strengthening the country’s digital ecosystem and improving the delivery of digital services across sectors such as finance, healthcare, education, e-commerce, and governance. The initiative is also part of the broader vision of transforming India into a digitally empowered economy.
Read More: Odisha Hoteliers Seek Minister Puri's Intervention Over LPG Supply
Industry data suggests that most of the country’s data centre capacity is concentrated in major metropolitan cities. Mumbai currently leads with an operational capacity of 790 MW, making it the largest data centre hub in India. Chennai follows with 305 MW, while Bengaluru has around 182 MW of capacity. Hyderabad accounts for about 152 MW, and the Delhi-NCR and Noida region together have around 76 MW.
The government is also focusing on strengthening international connectivity and digital infrastructure through submarine cable networks. At present, four submarine cable systems are being commissioned at various Cable Landing Stations across the country. In addition, three more submarine cable systems are currently under planning by telecom service providers, with proposals submitted to the Department of Telecommunications.
Recent policy measures announced in the Union Budget 2026-27 aim to further boost investment in this sector. One of the key proposals includes a tax holiday until 2047 for eligible foreign cloud service providers that use India-based data centres for global operations. This move is expected to attract international technology companies and encourage large-scale investments.
Globally, data centres are becoming a crucial driver of economic growth and investment. According to the United Nations Conference on Trade and Development (UNCTAD), announced investments in data centres crossed USD 270 billion in 2025, accounting for more than one-fifth of global greenfield project values.
With rising demand for artificial intelligence computing and data-driven services, India is positioning itself as a major global hub for digital infrastructure in the coming years.
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