India’s data centre (DC) industry has secured over $6.5 billion in investments through private equity, joint ventures, and acquisitions between 2014 and 2024, according to ANAROCK Capital’s latest report. With exponential growth, IT power capacity surged by 139 per cent—from 590 MW in 2019 to 1.4 GW in 2024.

Mumbai and Chennai dominate the sector, accounting for 70% of India’s total IT power capacity, with Mumbai alone contributing 49 per cent. These cities saw record-breaking supply growth between 2022 and 2024—92 per cent in Mumbai and 340 per cent in Chennai. Other key markets include Noida (9 per cent), Bangalore (8 per cent), Pune (5 per cent), and Hyderabad (4 per cent).

India has also become a hotspot for hyperscalers adopting the 'own-and-operate' model, with 440 acres of land acquired in Hyderabad (69 per cent), Mumbai (22 per cent), and Pune (9 per cent) over five years.

AI is expected to drive the next wave of DC growth, demanding liquid cooling, higher rack densities, and enhanced floor loads. The rise of edge data centres in Tier II cities and the push for sustainable ‘Green DCs’ will further shape the sector’s future.