India’s Data Center Boom: Doubling Capacity by 2028

Joyce Tigley
Oct 14
2 min read

India is rapidly emerging as a global hub for digital infrastructure. A major development on this front is the government and industry’s collective plan to double the country’s third-party data center capacity by 2028. This expansion comes as a response to the exponential rise in demand for cloud computing, artificial intelligence (AI), big data analytics, and digital services.

📈 Why This Matters

The growth of data centers is more than just a story of technology—it reflects India’s evolving digital economy:

Cloud Adoption Surge: With businesses of all sizes migrating to the cloud, the need for secure, scalable storage is skyrocketing.
AI and Machine Learning Growth: Training and deploying AI models require massive computing power and storage, further pushing the need for high-performance data centers.
Digital Public Infrastructure: Initiatives like UPI, Aadhaar, and ONDC are generating vast amounts of data, necessitating reliable storage and faster processing capabilities.

🚀 Driving Factors

Several factors are fueling this expansion:

Rising Internet Penetration – India now has over 800 million internet users, and this number continues to grow.
5G Rollout – High-speed connectivity is accelerating data consumption and content delivery.
Global Cloud Providers – Tech giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are scaling operations in India.
Government Policies – Supportive policies, data localization norms, and incentives for infrastructure investment are creating a favorable ecosystem.

🌍 The Bigger Picture

Globally, data centers are becoming the backbone of the digital economy. India’s aggressive capacity expansion signals its intent to be at the forefront of this transformation. By 2028:

The country could become a leading data hosting and processing hub in Asia.
Green and sustainable data centers will likely be prioritized, addressing concerns around power consumption and carbon footprint.
It will open up massive opportunities for job creation, tech innovation, and investment inflows.

💡 What This Means for Businesses and Consumers

Businesses: Enhanced infrastructure means improved cloud services, reduced latency, and better compliance with data regulations.
Consumers: Faster apps, seamless digital experiences, and more reliable online services.
Startups: Affordable, scalable storage and compute power, enabling innovation at lower costs.

Conclusion

India’s decision to double its third-party data center capacity by FY2028 reflects the nation’s digital-first future. As cloud, AI, and data-driven services become integral to every sector, robust data infrastructure will be the foundation that powers growth. This move positions India not just as a consumer of digital services but as a global digital infrastructure leader in the making.