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

The Economic Survey 2026 stated that data centres will be the backbone of India’s digital future due to AI workloads, cloud adoption, and 5G data consumption. It states that the data centre capacity is expected to reach about 8 GW by 2030, up from 1.4GW in Q2 of 2025.

As of now, India hosts only 3% of global data centres, showcasing the "competitiveness gap" as a hurdle. The survey said, “AI data centres are specialised high-performance facilities designed to meet the intensive computational needs of artificial intelligence, machine learning, and deep learning workloads.” 

It further highlighted the emerging data centre hubs in Malaysia (Johor), Japan, and Vietnam, contributing to the intensified competition. The survey stated that “addressing structural constraints such as energy shortages will be critical for India to position itself as a global AI data centre hub.”

It also emphasises a move toward Green Data Centres for less energy consumption and fewer emissions, and that it should supply at least 50% of its energy needs by 2030. However, it also encourages moving beyond traditional data centres. The survey notes, “Success in the AI era is not an entitlement; it must be created brick by brick.”

Ultimately, India’s becoming a global digital leader depends on two pillars: physical data infrastructure and government cloud services, as they may drive the backbone for an AI-ready future.

While the claims sound optimistic and challenging at the same time, the Union Budget 2026 will decide how the government plans to scale India’s AI infrastructure and help achieve the projected 8 GW data centre target.