India’s Data Centre Industry Enters a Major Growth Phase

India’s data centre sector is poised for rapid expansion, driven by increasing demand for cloud services, artificial intelligence (AI), digital platforms and data-intensive applications.

According to a Crisil Ratings report, India’s installed data centre capacity is expected to increase five-fold to around 7.5 gigawatts by March 2030, attracting more than ₹3 lakh crore in investments over the next four financial years.

Vizag Joins Major Data Centre Hubs

While Mumbai remains India’s largest established data centre market, Visakhapatnam and Hyderabad are gaining prominence as major destinations for future capacity.

Crisil estimates that nearly three-fourths of India’s upcoming data centre capacity—around 6 GW—will be concentrated in Visakhapatnam, Mumbai and Hyderabad.

The report also indicates that by 2030, data centre capacity in Vizag could be equivalent to around 80% of the city’s current peak electricity demand, highlighting both the scale of planned development and the importance of reliable power infrastructure.

Google’s AI Hub and Other Major Projects

Visakhapatnam’s growing profile is supported by major proposed digital infrastructure investments. Google’s planned AI hub near the city is among the projects expected to strengthen its position in cloud computing and AI infrastructure.

Other developers and investors are also exploring large-scale data centre facilities in the region, contributing to a wider ecosystem of digital infrastructure, connectivity and supporting services.

Why Visakhapatnam Is Attracting Investment

The city’s emerging appeal is linked to several factors:

• Availability of land for large-scale campuses

• Potential for expanding power infrastructure

• Coastal connectivity and planned subsea cable infrastructure

• State-level investment incentives

• Scope for renewable-energy integration

• Growing demand for AI and cloud computing infrastructure

These factors are helping Vizag compete for projects that require significant space, power and long-term infrastructure planning.

Infrastructure and Sustainability Remain Critical

The scale of planned development will also create challenges. Data centres require substantial and reliable electricity, advanced cooling systems, water management and strong transmission infrastructure.

Crisil has noted that timely power connectivity, regulatory approvals and disciplined project execution will be critical to ensuring that proposed investments become operational without major delays or cost overruns.

Vizag’s Digital Future

With major investments under development and demand for digital services continuing to rise, Visakhapatnam is positioning itself as an important part of India’s next phase of data centre growth.

The city’s ability to provide reliable infrastructure, sustainable power and timely project execution will play a key role in determining how much of this investment pipeline translates into operational capacity and long-term economic benefits.