India’s data centre industry is entering a phase of unprecedented growth, with installed capacity expected to increase from 1.5 GW in 2025 to 6.5 GW by 2030, according to a new report by Rubix Data Sciences. The expansion reflects rising demand for digital infrastructure and is expected to significantly boost the need for energy storage solutions and reliable power systems.
The report notes that India added 387 MW of IT capacity in 2025, more than double the 191 MW added in 2024, marking a 103% year-on-year increase. Capacity additions over the past year have outpaced those recorded during the previous three years combined, highlighting the sector’s rapid development.
Growth in the sector is being fuelled by increasing adoption of cloud computing, artificial intelligence (AI), and digital services, including 5G, e-commerce, UPI, and OTT platforms. As of January 2026, India had 271 operational data centres, with Mumbai, Hyderabad, Delhi NCR, Bengaluru, and Chennai accounting for nearly 65% of the country’s total facilities.
Rubix Data Sciences estimates the current investment pipeline for announced and under-development data centre projects at around USD 90 billion, nearly six times the investments made between 2020 and 2024. Major global technology companies, including Amazon Web Services, Microsoft, and Google, continue to expand their presence, strengthening India’s position as a leading data centre destination.
The report also highlights that the rapid increase in data centre capacity will drive higher electricity consumption, creating strong demand for advanced energy storage systems and resilient power infrastructure. Battery energy storage solutions are expected to play a vital role in ensuring uninterrupted operations, improving grid stability, and supporting greater integration of renewable energy into data centre facilities.
Despite the strong outlook, the industry will need to address challenges related to power availability, water consumption, and long-term sustainability. With continued investments, supportive policies, and expanding renewable energy capacity, India is well positioned to emerge as a global hub for hyperscale and colocation data centres while accelerating demand for energy storage technologies.
