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India data center capacity exceeds 1,500 MW: electronics ministry
India’s data center capacity rose more than fourfold from 375 MW in 2020 to over 1,500 MW by 2025, the Ministry of Electronics and IT said.
Mumbai has the largest operational capacity at 790 MW.
Other hubs are Chennai with 305 MW, Bengaluru with 182 MW, Hyderabad with 152 MW, and Delhi-NCR/Noida with 76 MW.
The ministry said the government is facilitating data center establishment to strengthen digital infrastructure and improve delivery of digital services.
Four submarine cable systems are being commissioned at various cable landing stations, and three more are planned, with applications submitted by various telecom service providers to the Department of Telecommunications.
The Union Budget 2026–27 proposed a tax holiday until 2047 for eligible foreign cloud providers that use India-based data centers for global operations.
🔗 Source: The Economic Times
🧠 Food for thought
Implications, context, and why it matters.
Data laws and AI demand drive India’s data centre boom
- Rising capacity tracks day-to-day use from over 800 million internet users 1.
- The Digital Personal Data Protection Act is pushing companies to keep personal data onshore, which is feeding new data-centre projects 2.
- Artificial intelligence is adding load, with operators talking about an 800 MW pipeline for AI workloads that need specialised high-density cooling 3.
- India produces nearly 20% of the world’s data yet holds about 3% of global data centre capacity, according to cited estimates 4.
The new tax holiday targets global cloud exports
- The Union Budget 2026–27 tax holiday aims to bring more hyperscaler work to India for overseas customers, which could help the country move beyond being mainly a consumption market 5.
- In the past, foreign hyperscalers’ India operations risked being treated as a “permanent establishment” (a taxable business presence in a country), with profits taxed at 35% plus surcharge and cess, according to experts quoted by CNBC 5.
- Ending that tax until 2047 could lower costs versus hubs like Singapore, the UAE and Ireland, based on expert views 5.
- Some observers expect more foreign investment, plus asset-light approaches that lean on Indian partners for physical infrastructure 6.
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