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ARTICLE · 10 MARCH 2026

India's Data Center Sector Is Entering A Defining Decade

King, Stubb & Kasiva
King, Stubb & Kasiva
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King, Stubb & Kasiva

King, Stubb & Kasiva

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Valued at approximately USD 8.94 billion in 2025 and projected to exceed USD 31 billion by 2035, the data center sector is witnessing unprecedented acceleration in both capital deployment and infrastructure build-out.

IndiaPrivacy
Jidesh Kumar
Jidesh Kumar
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Valued at approximately USD 8.94 billion in 2025 and projected to exceed USD 31 billion by 2035, the data center sector is witnessing unprecedented acceleration in both capital deployment and infrastructure build-out. Operational capacity has crossed 1,500 MW, with nearly 4,000 MW under construction or in advanced stages of development, placing India on a steep capacity expansion trajectory through 2026 and beyond.

However, what distinguishes this growth cycle from previous infrastructure waves is the regulatory inflection point. The notification of the Digital Personal Data Protection Rules, 2025 has introduced a time-bound compliance framework culminating in May 2027. Data center operators, hyperscalers, cloud providers, financial institutions, and enterprise occupiers must align infrastructure, contracts, and governance structures within this transition window. Penalties for non-compliance are significant, and sector-specific localisation mandates continue to

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