New Delhi — India may need an additional 45 to 50 million square feet of real estate and up to 45 terawatt-hours (TWh) of power by 2030 to support the country’s rapidly growing demand for artificial intelligence (AI) infrastructure, according to a new report by Deloitte.
The report highlights India’s cost advantages, strategic location, and commitment to renewable energy as key strengths for data center development. It also emphasizes that targeted policy reforms will be critical for India to establish itself as a global AI powerhouse.
To reach its full potential, the report outlines six essential pillars for building an AI-ready ecosystem: real estate, power and utilities infrastructure, connectivity and network infrastructure, compute infrastructure, skilled talent, and an enabling policy framework.
“For India to scale its AI capabilities, the country must invest in supportive policies and infrastructure,” said S. Anjani Kumar, Partner at Deloitte India. “Developing AI-ready infrastructure is essential to meet the surging demand for data analytics and processing. Advancing R&D, strengthening talent pipelines, and ensuring access to vernacular datasets will be just as important.”
India’s geographic advantage positions it as a key player in both domestic and global markets, making it an increasingly attractive hub in the international data center ecosystem. However, Deloitte’s report notes that becoming a global leader in AI requires moving beyond traditional data center models.
“The next wave of AI infrastructure in India must focus on high-performance compute capacity, scalable power and cooling systems, and efficient networking,” said Neha Aggarwal, Partner at Deloitte India. “This will require not just technological investment but a shift in regulatory and policy support.”
While India already benefits from lower land and labor costs for data center development, the scale of AI-driven growth means substantial new construction will be required. Interest in colocation models and state government incentives are helping fuel this expansion.
From a policy standpoint, Deloitte recommends recognizing data centers as a separate category under the National Building Code and designating them as essential services under the Essential Services Maintenance Act. The report also calls for faster and simpler regulatory approvals, proposing the creation of dedicated data center facilitation units to streamline development.
With coordinated efforts across infrastructure, talent development, and policy, the report concludes, India has the potential to become a leading global hub in AI infrastructure. (Source: IANS)
