Open your phone. Send a message. Watch a reel. Order groceries. Do a quick UPI transfer. Every one of those actions leaves behind data. And someone needs to store that data safely, quickly, and preferably nearby. That “someone” is no longer just Google or Amazon sitting in California. Increasingly, its Indian business giants like Reliance and Adani are building massive warehouses of servers right here, in India.
These facilities are called data centers, specialised buildings full of computers that store and manage the internet’s memory. Think of them as digital warehouses. They don’t just hold your files and videos; they also power the AI tools, banking apps, and cloud services you use daily. And they need to be close to users for speed, security, and compliance.
So why the sudden gold rush?
Start with scale. As of early 2025, India has over 806 million internet users; that’s more than half the country online. We generate about 20% of the world’s data, according to multiple reports. But we host only 5.5% of the world’s data center capacity and that gap has become impossible to ignore.
India’s new Digital Personal Data Protection Act (DPDPA), passed in 2023, has added fuel to this fire. It doesn’t force all data to be stored locally but it does restrict transfers to certain countries and gives the government power to decide what stays in India. For businesses dealing with sensitive user information like banks, healthcare providers, and fintechs storing data inside India is now the safer, smarter route.
This is why companies like Reliance are going big. The group is building a massive AI-focused data center in Jamnagar, Gujarat, powered entirely by renewable energy. While exact land size is unconfirmed, what we do know is that Reliance plans to deploy 3 gigawatts (GW) of green power and invest up to $30 billion to support its digital infrastructure including this data center. AdaniConneX, a joint venture with US-based EdgeConneX, has plans to roll out 1,000 megawatts (MW) of data center capacity over the next decade; nearly as much as India has today.
And it’s not just Indian players. Amazon Web Services (AWS) has committed ₹1.05 lakh crore ($12.7 billion) to Indian cloud infrastructure by 2030. Google has acquired land in Navi Mumbai for its first self-developed data center. Microsoft, too, is expanding fast with large land purchases in Hyderabad and Pune as part of its growing cloud and AI strategy. Together, they’re part of a global shift that’s putting India at the center of the world’s cloud map.
Right now, India’s installed data center capacity is about 1.35 GW (1,350 MW). By FY27, it’s expected to more than double to 2–2.3 GW, according to CRISIL. This includes new hyperscale centers being built in Mumbai, Chennai, Hyderabad, Noida, and Pune — cities with fiber networks, reliable power, and proximity to customers. Mumbai leads with about 45% of total capacity, but other cities are catching up fast as land and power constraints push companies to diversify.
This isn’t just about storing Netflix content or photo backups. Modern AI tools like ChatGPT or BharatGPT etc run on powerful chips called GPUs, which need high-performance data centers to function. The closer these centers are to the end users, the faster the response times. That’s called reducing latency or, simply put, cutting the lag between asking a question and getting an answer.
And power? It’s everything. A large data center can consume 50–100 MW of electricity, enough to power 50,000 to 100,000 Indian homes. As AI adoption rises, India’s data center power demand is expected to grow significantly with some projections going as high as 5 GW by 2030, and others estimating up to 9.2 GW in aggressive growth scenarios. That’s a steep climb, and it’s why companies are pairing data storage with green energy. Adani’s edge here is clear: with control over solar, wind, land, and logistics, it can offer a bundled, sustainable solution for the long run.
States are competing, too. Tamil Nadu, Uttar Pradesh, Telangana, and Maharashtra are offering incentives like discounted land, tax breaks, and fast-track clearances to attract data center investments. These projects generate local jobs, improve digital infrastructure, and help attract global tech firms looking for regulatory stability and cheaper operating costs.
That said, it’s not all smooth sailing. India faces grid bottlenecks, high import duties on specialized hardware, and a talent crunch in cooling and systems engineering. While the DPDPA lays the groundwork, actual enforcement and clarity on cross-border rules are still evolving. Companies are watching how the government enforces this law and how much flexibility it allows for global cloud operations.
But one thing’s clear: India is no longer just a market for digital services. It’s becoming the factory floor where global data is processed, stored, and increasingly generated. From AI training to fintech transactions, everything now needs infrastructure. And infrastructure needs land, fiber, energy, and policy backing. The companies that control all four like Reliance and Adani are quietly building the pipes that the next billion Indians will rely on.
Final pour: India’s data center boom is not just about speed and storage. It’s about sovereignty, scale, and strategy. In a world where digital power is real power, data doesn’t just live in the cloud anymore; it’s grounded in hardware, humming in Indian cities, and backed by some of the country’s biggest names. As the internet becomes India’s new highway, everyone wants to own the toll booth. And this time, it’s not about who connects us — it’s about who keeps our data safe, local, and ready for the future.
