In numbers: India's data centre power challenge

As investors pour billions into data centres, India needs to sustainably power its digital infrastructure

Nov 13, 2025, 11:18 IST1 min

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India's data centre (DC) capacity is expected to double in the next three years from 1.25 GW in 2025 to 2.5 GW in 2028

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The rise in overall DC capacity is driving a parallel boom in edge DCs (smaller facilities closer to users), which will constitute 8% of total DC capacity by 2027 according to an ICRA forecast

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Power and fuel dominate the expenses of a DC, constituting over 30% of its operating costs. This is a major concern as growth in energy consumption outpaces that of energy supply

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Computing power and server resources consume about 40% of the power in a DC followed by cooling systems

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Electrical, mechanical and plumbing works make up three-fifths of the capital cost in a DC

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Prominent cable landing stations, major corporate headquarters, and low power outages make Mumbai the preferred data centre destination

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Mumbai and Hyderabad also lead in share of upcoming projects

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Grid instability and land leasing rates are major medium-term impediments for DC growth in India

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The five largest players have setup 79 DCs in India with a collective capacity of 910 MW