According to a report by Savills India, India added 258 megawatts (MW) of new data centre capacity during the first half (H1) of 2026, a 59 per cent increase over the 162 MW added in the corresponding period of 2025.
The report said the latest additions have taken the country’s total operational data centre capacity to 1.8 gigawatt (GW) IT, with the market projected to expand to more than 7 GW IT by 2030.
Savills noted that hyperscale facilities account for 36 per cent of the operational capacity, while enterprise-focused data centres contribute 8 per cent and edge data centres account for 1 per cent. The remaining 55 per cent comprises facilities serving both hyperscale and enterprise customers.
As per the report, the sector continues to witness sustained growth, supported by expansion from established operators as well as investments from new developers and funds.
While demand in the broader colocation market has moderated due to increasing enterprise adoption of cloud services, the consultancy said demand from hyperscalers and large enterprises remains strong and is expected to continue driving capacity expansion. It also highlighted growing interest from neo-cloud service providers, which are evaluating India as a strategic market owing to its cost advantages and expanding digital infrastructure ecosystem.
Despite the positive outlook, Savills said access to reliable power and suitable land parcels remains a key challenge for data centre development across major markets. The consultancy noted that operators and hyperscalers are increasingly exploring new locations for expansion, with support from state governments expected to play an important role in enabling future growth.