By 2035, India's data center capacity is expected to reach 14GW: Report

India’s Data Centre Capacity Seen Rising to 14 GW by 2035: PwC

India’s data centre capacity currently stands at 1.5 gigawatts (GW) and is projected to grow to 14 GW by 2035, expanding at a compound annual growth rate (CAGR) of 20%, according to a PwC India report.

The report, titled “Transforming India into a Trusted Global Data Hub: A Future-Ready Tax Policy for Data Centres”, said the growth will be driven by rising demand from artificial intelligence, cloud computing and 5G services.

PwC noted that India’s digital economy contributes 11.74% to the country’s GDP, valued at ₹40.2 lakh crore in FY23, and is expected to rise to 20% of GDP by FY29. This rapid expansion is strengthening India’s position as a potential global hub for data and digital services.

The report also highlighted the role of policy support in enabling this growth. Measures such as the Digital Personal Data Protection (DPDP) Act, 2023, and the proposed Data Centre Policy are expected to create a more secure and predictable regulatory environment for investments in data infrastructure.

PwC said these developments together could help India attract global investments and build a robust, trusted data ecosystem in the coming years.