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Data centre capacity in the country has grown from 375 Megawatt (MW) in 2020 to more than 1500 MW till 2025, according to a statement released by the Ministry of Electronics & IT.
In line with Prime Minister Narendra Modi's vision, the Government is democratising the development and usage of technology. The focus is on facilitating the establishment of data centres in the country, which will help strengthen digital infrastructure and improve delivery of digital services across various sectors. Data centres are spread across the country, and as per industry sources, major capacity is in cities like Mumbai, Chennai, Bengaluru, Hyderabad, and Delhi-NCR/Noida. In Mumbai, the operational capacity is 790 MW, which is the largest in the country. Chennai is ranked second in terms of operational capacity of data centres with 305 MW. Bengaluru, Hyderabad and Delhi-NCR/Noida have operational capacities of 182 MW, 152 MW, and 76 MW, respectively. Four submarine cable systems are currently under being commissioned at various Cable Landing Stations (CLS). Further, three submarine cable systems are under planning by various Telecom Service Providers (TSP) for which applications have been submitted to DoT. The policies of the Government of India are aimed at ensuring a safe, trusted and accountable cyberspace with sufficient data storage capacity within the country. Recently, the Union Budget 2026-27 also included major policy initiatives to strengthen India's position as a global hub for digital infrastructure. A tax holiday till 2047 was proposed for eligible foreign cloud providers using India-based data centres for global operations in the budget. Globally, data centres have emerged as a major driver of investment and economic activity. According to the United Nations Conference on Trade and Development (UNCTAD), data centres accounted for more than one-fifth of global greenfield project values in 2025, with announced investments exceeding USD 270 billion. Rapid growth in AI compute demand and data-intensive digital services is intensifying international competition to attract such infrastructure. In this context, India's long-term tax framework aims to provide investment certainty, anchor high-value digital infrastructure within the country, and strengthen India's role in global digital value chains in line with the vision of Viksit Bharat by 2047. (ANI)
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