India’s total data centre sector revenue is projected to reach approximately $45.69 billion by 2033, driven by rising AI workloads, cloud adoption and data localisation requirements, according to a report by KPMG.The report, titled India’s Data Centre Revolution: The Integrated Lifecycle Blueprint (2026–2030), said the country’s AI-optimised data centre market is expected to grow from about $588.6 million in 2024 to $3.55 billion by 2030, registering a compound annual growth rate (CAGR) of 35.1%.
KPMG said India’s data centre industry is entering a new phase where AI infrastructure, rather than traditional cloud demand alone, will shape future growth. The report noted that many older facilities in the country still rely on legacy air-cooling systems that are unable to efficiently support high-density graphics processing unit (GPU) clusters used for AI applications.
