Data Centres

India’s data centre ecosystem is entering a pivotal phase of transformation - driven by the convergence of artificial intelligence (AI), cloud adoption, 5G rollout, and data localisation requirements. What was once a backend enabler has now evolved into critical national digital infrastructure, supporting financial systems, governments, enterprises, and emerging AI ecosystems.

As India accelerates towards its trillion-dollar digital economy vision, data centres are becoming the backbone of this shift - enabling scalability, resilience, and secure data management at an unprecedented scale.

A High-Growth Market Driven by AI and Digital Demand

India’s data centre sector is seeing rapid growth, driven by AI, cloud adoption and data localization. Rising digital adoption, 5G rollout and AI-led workloads are accelerating demand for high-density, scalable infrastructure, positioning India as a key global data hub.
From Fragmentation to Integrated Models

Execution complexity remains a key challenge, driven by fragmented delivery across the value chain. The industry is shifting to integrated lifecycle models, enabling end-to-end delivery - from planning to operations - for faster execution, improved accountability, and greater efficiency.
Building for AI-ready infrastructure

AI is reshaping data centre design, driving the need for high-density, low-latency environments with advanced cooling and power systems. Infrastructure must be scalable and flexible to support evolving technologies and next-generation workloads.

Resilience and Security in a Complex Risk Environment

As data centres become strategic assets, the focus is shifting from uptime to survivability-first design, addressing cyber-physical risks, supply chain disruptions and connectivity failures. This is driving investments in resilient infrastructure, self-sufficient systems and robust governance frameworks.
Policy, Sustainability and Data Sovereignty Imperatives

Policy and regulation are key enablers, with data localisation laws and FDI incentives driving domestic infrastructure growth. At the same time, rising energy demands are accelerating the shift towards renewable energy, efficient design and ESG-aligned operations to ensure sustainable scalability.

Latest insights

Decoding India’s data centre opportunity across demand drivers, capacity scale-up, supplier ecosystem, regulatory landscape and its strategic roadmap

India’s integrated data centre economy, combining execution and orchestration in a unified workflow blending engineering, regulation, and finance

Key war time considerations for data centres and the shift towards resilient and survivable future designs

India’s digital revolution driven by AI, cloud and data centres, focusing on supply chains, power, water, land, buildings and skilled talent

India’s data center boom, fueled by data sovereignty, 5G and AI is building the backbone of its trillion-dollar digital economy

Driving growth with Data Centres trends

India data centre opportunity

Rohan Rao
Raghavan Viswanathan

Rohan Rao

Partner, Deal Advisory

KPMG in India

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India’s data centre sector is at an inflection point where demand, capital and technology are converging to drive large-scale infrastructure development. The transition toward AI-led workloads is fundamentally changing the design, scale and economics of data centres across the country.

With strong domestic demand and favourable cost structures, India is well positioned to become a key node in the global digital infrastructure ecosystem.

Raghavan Viswanathan

Partner, Deal Advisory

KPMG in India

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The rapid evolution of digital consumption, alongside regulatory push for data localisation, is creating sustained demand for domestic data centre capacity. At the same time, the emergence of AI-centric infrastructure is reshaping requirements across power, cooling and compute layers. These structural shifts present a significant opportunity for India to build a resilient, scalable and globally competitive data centre ecosystem.