India's data centre market is set to undergo a dramatic transformation, with operational capacity projected to expand more than fivefold to 12 gigawatts (GW) by 2030, according to Wood Mackenzie. This growth is primarily fueled by the rapid adoption of artificial intelligence (AI) across industries, which is increasing the demand for specialized data centre infrastructure. The report highlights that AI-dedicated capacity is expected to rise significantly, reaching 6,546 megawatts (MW) by 2030, compared to just 275 MW in 2025. This surge reflects the growing importance of AI in driving digital innovation and economic development in the country.

The expansion of India's data centre market is being driven by a combination of factors, including the increasing investment in hyperscale infrastructure, the rise of cloud computing, and the need for robust digital infrastructure to support a growing digital economy. Wood Mackenzie notes that the convergence of hyperscale capital and the demand for AI-driven services is reshaping the landscape of data centre development in India. This shift is creating new opportunities for data centre developers and technology firms looking to capitalize on the growing demand for scalable and efficient infrastructure.

The report underscores the significant growth in AI-dedicated capacity, which is expected to increase from 275 MW in 2025 to 6,546 MW by 2030. This represents a more than 20-fold increase over the next seven years. The rapid expansion of AI-dedicated infrastructure is being driven by the need for high-performance computing resources to support AI applications in sectors such as healthcare, finance, and manufacturing. As AI adoption continues to accelerate, the demand for specialized data centre infrastructure is expected to remain strong, further fueling the growth of the market.

In India, the expansion of data centre capacity is being shaped by regulatory developments and the availability of reliable power supply. According to Rashika Gupta, Vice President of Research at Wood Mackenzie, access to firm, round-the-clock power at the node is now a key determinant in site selection and delivery timelines for data centre developers. This highlights the importance of infrastructure and energy policies in supporting the growth of the data centre market. Additionally, the Indian government's focus on digital transformation and the increasing investment in technology infrastructure are expected to further drive the demand for data centre capacity in the coming years.

The growth of India's data centre market is still in its early stages, with significant opportunities ahead for developers and technology firms. As the demand for AI-dedicated infrastructure continues to rise, the market is expected to attract more investment and innovation. Wood Mackenzie's report emphasizes that the data centre market in India is becoming a structural investment thesis, with long-term growth prospects driven by the convergence of hyperscale capital and the increasing demand for AI-driven services. This trend is likely to continue as the digital economy expands and the need for robust data centre infrastructure grows.