Economic Survey 2026 projects India’s data centre boom to 8 GW by 2030

According to the Economic Survey 2026, India is poised for a significant transformation in its digital landscape, with data centres emerging as a cornerstone for the future. The report anticipates that the capacity of these facilities will soar to approximately 8 GW by the year 2030, a substantial increase from the 1.4 GW projected for the second quarter of 2025. Currently, India accounts for a mere 3% of global data centres, illustrating a notable 'competitiveness gap' that poses a challenge for the nation. The survey underscores the importance of AI data centres, which are specially designed to cater to the demanding computational requirements of artificial intelligence, machine learning, and deep learning applications. Additionally, the survey highlights the rise of competing data centre hubs in regions such as Johor in Malaysia, Japan, and Vietnam, intensifying the race in this sector. It stresses that overcoming structural obstacles, particularly energy shortages, will be vital for India to emerge as a global leader in AI data centres. The report also advocates for the adoption of Green Data Centres aimed at reducing energy consumption and emissions, with a goal of sourcing at least 50% of energy needs through sustainable means by 2030. Furthermore, it encourages a departure from conventional data centre models, emphasizing that success in the AI-driven era requires deliberate and sustained effort. Ultimately, India's aspiration to become a global digital frontrunner hinges on two fundamental elements: robust physical data infrastructure and effective government cloud services. These components are seen as essential for establishing a framework ready for an AI-centric future. While the outlook is both ambitious and daunting, the upcoming Union Budget 2026 will be crucial in determining how the government intends to enhance India's AI infrastructure to meet the ambitious target of 8 GW in data centre capacity.