Axis Capital sees India data centre capacity at 3-3.6 GW by 2030, roughly half the industry's public 6-8 GW targets, citing execution and supply-chain constraints.
India's data centre capacity will likely reach 3 to 3.6 GW by 2030, well short of the 6-8 GW targets the industry has publicly announced, according to an Axis Capital report that cited expert assessments. The gap reflects execution hurdles and supply-chain delays that could keep actual operational capacity closer to 2.8 GW by mid-decade, the report said.
Hyperscalers are expected to drive roughly 90% of new demand by 2030, up from about 60% today, as Amazon Web Services, Microsoft and Google expand capacity and emerging AI-focused cloud players and large language model hosting requirements accelerate, the report noted. Enterprise demand, by contrast, is forecast to stay broadly flat in absolute terms.
India currently has about 1.3-1.4 GW of installed data centre capacity. Third-party colocation facilities hold the largest share at 60-65%, followed by hyperscaler captive or leased capacity at 25-30%. Enterprise and edge data centres make up the rest.
The pipeline is building. Around 900 MW to 1.2 GW of capacity was awarded in the last six to seven months of calendar 2026, though an award does not immediately translate into operations. Even the first phase of a project typically takes at least 32 to 36 months to roll out, the report said.
Supply-chain constraints remain a key bottleneck. Hyperscaler-grade backup generation equipment from leading global suppliers is reportedly booked roughly two years ahead. Shortages of EPC contractors and manpower, combined with power-sanction timelines of around 18 months, could further slow execution, the report said.
Capital costs are rising as AI-enabled facilities require more expensive infrastructure. Traditional colocation builds run about ₹44-46.6 crore per MW, excluding IT hardware, while AI-enabled infrastructure costs ₹48-54 crore per MW – a 10-15% premium.
If currently announced projects are fully realised, India's data centre capacity could reach 7-8 GW by 2035, pointing to long-term opportunities across power, cooling, backup infrastructure, construction and electrical equipment, the report said.
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