India may need an additional 45-50 million square feet of real estate and 40-45 terawatt-hours (TWh) of incremental power for data centers by 2030 to support the rising demand for artificial intelligence (AI), according to a Deloitte report. The report, titled "Attracting AI Data Centre Infrastructure Investment in India," highlights India's advantages in cost, renewable energy focus, and strategic location. However, it also cautions that India’s potential as a global AI hub depends on addressing critical gaps in infrastructure, talent, and policy.

Figure 1. India May Need 50 million Sq Ft More Real Estate for Data Centers by 2030: Deloitte.

The report outlined six key pillars for developing a world-class AI ecosystem: real estate, power and utilities, connectivity, compute infrastructure, talent, and policy framework. Figure 1 shows India May Need 50 million Sq Ft More Real Estate for Data Centers by 2030: Deloitte.

It recommended targeted measures, such as creating a distinct category for data centers in the National Building Code and granting them recognition under the Essential Services Maintenance Act, to encourage specialized infrastructure development.

The report also emphasized that establishing data centre facilitation units to fast-track and simplify approvals could accelerate data centre deployment.

Deloitte stressed the importance of policy support, streamlined data localization regulations, and the establishment of dedicated data centre zones as critical steps to strengthen India’s AI infrastructure.

The report stated that amending data access provisions under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, to align with data centres' operational realities, and exempting data centres from surveillance under the Telecommunication Act, 2023, will provide essential policy support to boost India’s data centre capacity.

It also highlighted that implementing safe harbour rules for data hosting providers and establishing data embassies will accelerate investment and drive India’s data centre growth.

However, Deloitte warned that the rapid expansion of data centres will place significant strain on India’s power grid, necessitating urgent investments to increase generation capacity, upgrade infrastructure, and improve integration of renewable energy sources.

Despite notable progress, Deloitte noted that India still faces network and connectivity challenges—including limited fiber optic coverage in rural areas, unreliable high-speed internet, and high latency—that hinder its full potential in data centre development.

Neha Aggarwal, Partner at Deloitte India, emphasized that focusing on high-performance compute infrastructure, scalable power and cooling systems, and efficient networking, alongside revisiting the policy framework, can position India as a leading hub for AI-powered data centres in the coming years.

Growing Demand for Data Centers in India

With the rapid rise of artificial intelligence (AI) and digital services, India’s demand for data centers is expected to surge significantly over the next decade. These centers are critical to supporting data storage, processing, and cloud computing needs.

Real Estate Needs for Expansion

To accommodate this growth, India may require an additional 45 to 50 million square feet of real estate by 2030. This space will be used to build new data centers equipped with state-of-the-art technology.

Power and Infrastructure Challenges

Along with physical space, data centers demand a large and reliable power supply. Deloitte highlights the need for around 40 to 45 terawatt-hours of additional power to support these facilities, emphasizing upgrades to the power grid and renewable energy integration.

Policy and Regulatory Support

For India to become a global AI hub, targeted policy interventions are essential. This includes revising building codes, simplifying approval processes, offering incentives, and updating data localization and surveillance regulations to support data center growth.

Strategic Importance and Future Outlook

India’s cost advantages, renewable energy focus, and strategic location position it well to become a major player in AI infrastructure. However, addressing gaps in infrastructure, talent, and policy will be critical to fully realize this potential by 2030.

Reference:

1. https://cio.economictimes.indiatimes.com/news/data-center/india-may-need-additional-50-mn-sqft-real-estate-for-data-centres-by-2030-deloitte-report/121016554

Cite this article:

Priyadharshini S (2025), India Could Require an Additional 50 million Sqft of Real Estate for Data Centers By 2030: Deloitte Report, AnaTechMaz, pp.126