India’s digital infrastructure growth is reaching a new high, with large-scale data centre projects emerging across Bengaluru, Navi Mumbai, and Hyderabad. The sector is gaining momentum with the proposed INR 3,700 crore IPO of Sify Infinit Spaces, India’s first-ever data centre listing. The move reflects how data centres have become essential assets in the digital economy, often described as the “new power plants” of a connected world.
“This isn’t merely a capital-raising event—it’s a litmus test of market maturity that will shape how lenders and investors assess risk in this sector,” said Hardeep Sachdeva, senior partner at AZB & Partners. India now accounts for nearly 20 percent of global data consumption, driven by rapid digitalisation and increasing investor confidence. Kalpana Unadkat, senior Indian lawyer and former India co-head at a global law firm, said, “Companies are increasingly interested in India because of the sheer size of our data streams and rapid digital adoption.”
According to Richa Choudhary, capital markets partner at Trilegal, India’s deep-rooted IT ecosystem, strong real estate base, and digital readiness are driving data centre expansion. “India’s strong foundation in IT services and real estate development has provided a natural glide path for scaling data centre capacity,” she said. The growth is also fuelled by Global Capability Centres (GCCs), which now exceed 1,800 in number and employ nearly two million professionals. These centres are projected to reach a $110 billion market size and 4.5 million jobs by 2030.
However, the sector faces challenges in power, land acquisition, and regulatory delays. “Fragmented policies and variations across states routinely delay projects by six to twelve months,” said Dhanendra Kumar, former chairperson of the Competition Commission of India. Power supply remains a major concern as AI and high-performance computing workloads are expected to push demand beyond 50 terawatt-hours by 2030. Developers like AdaniConneX and CtrlS are turning to renewable sources, supported by the government’s Green Energy Corridor initiative.
The government’s infrastructure status for data centres above 5 MW has improved access to financing and incentives. Yet, developers continue to navigate multiple regulations, from environmental clearances to local zoning approvals. Experts believe that a single-window clearance system could accelerate growth and attract more investment.
“Fund raises in this sector are key milestones—they signal commercial maturity, investor confidence, and the evolution of data centres from privately held assets to publicly investable platforms,” said Choudhary. Kumar added, “If India can reduce bureaucratic delays while preserving compliance and data sovereignty, the country could be the hub for global digital operations for decades to come.”
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