India’s data center industry is experiencing a rapid surge, attracting global tech giants, domestic billionaires, and even luxury real estate developers. The country currently has around 1.2 gigawatts (GW) of data center capacity, but projections suggest this will more than double to over 3 GW within five years, according to Colliers.

Major players are moving fast. Google is reportedly in talks with the Andhra Pradesh government to set up a 1 GW facility, while OpenAI has expressed plans for a similar-scale hub in India. Hyperscalers like Microsoft, Amazon Web Services, and Google are fueling demand, with AI workloads expected to drive the next growth wave.

Indian conglomerates such as the Adani Group and Reliance Industries, along with real estate developers like Hiranandani Group, Anant Raj Developers, and Panchshil Realty, are pivoting from traditional property projects to building large-scale data hubs. These facilities are now being designed to handle 25–100 megawatts, compared with just 10 MW for earlier enterprise-driven projects.

Regulatory hurdles remain a challenge. Developers must navigate 30-plus approvals across different agencies, while securing large, litigation-free land parcels adds complexity. Some international players are partnering with local developers to accelerate construction, as seen with Colt’s $1.7 billion joint venture with RMZ Infrastructure.

However, industry experts caution that oversupply and price wars may emerge as competition intensifies. “Compared to markets like Indonesia, pricing in India is under pressure due to competition for hyperscaler accounts,” said Devi Shankar, senior executive director at CBRE India. Analysts predict possible consolidation over the next two to three years as the market matures.

India’s data center boom underscores the country’s growing role in AI, cloud computing, and digital infrastructure, positioning it as a critical hub in the global tech landscape.