India Data Centers’ Capacity Set To Reach 3 Gigawatts by 2030

New Delhi, Oct 8 (KNN) India's data centre industry is poised for a significant transformation, with a large portion of its capacity expected to be dedicated to artificial intelligence (AI) and graphics processing unit (GPU) workloads by 2030.

According to industry forecasts, 40-50 per cent of the country's data centre capacity will cater to AI demands, reflecting the growing importance of AI in powering advanced technologies, including machine learning, natural language processing, and autonomous systems.

This shift is expected to coincide with an overall tripling of data centre capacity to 3 gigawatts (Gw), up from current levels.

The rising dominance of AI workloads in India's data centre infrastructure will likely be driven by increasing demand from various sectors, including healthcare, finance, e-commerce, and manufacturing, which are rapidly adopting AI-driven solutions to enhance efficiency and improve customer experiences.

Moreover, with advancements in AI technology, the need for high-performance GPUs to support these applications is set to grow, pushing data centres to prioritise hardware that can handle intensive processing tasks.

Adding further momentum to this transformation is the significant role being played by global cloud giants like Microsoft, Amazon Web Services (AWS), and Google.

These companies are accelerating investments in India's data centre landscape, as they look to establish their own captive data centres in the country.

Over the next five years, these cloud service providers are expected to collectively generate over 1 Gw of capacity.

Their increasing footprint underscores the strategic importance of India as a key market in the global cloud and data services ecosystem, especially in light of the country’s growing internet user base, digital transformation initiatives, and expanding 5G network.

This shift toward AI-centric data centres also aligns with India's broader digital infrastructure goals, including the push for data localisation and the creation of a robust cloud computing framework.

As these trends unfold, India is likely to emerge as a leading hub for data centre innovation, catering not only to domestic needs but also to global cloud service demands.

The next decade is set to reshape India's data centre business, as it evolves to accommodate the growing power and performance needs of AI and cloud technologies, while solidifying its role in the global digital economy.

(KNN Bureau)