NEW DELHI|SEPTEMBER 29,2025|SKY LINK TIMES|
India’s dream of building a $1 trillion digital economy by the end of this decade is increasingly reliant on cloud computing and data centre infrastructure, a new report by Equirus Capital has revealed. With the digital economy projected to touch $1.46 trillion by FY2030, colocation services and hyperscale cloud platforms are becoming the critical pillars of India’s growth story.
Cloud & Colocation: The Digital economy Backbone
According to the report, the trillion-dollar mission rests on four critical layers:
🔸Hardware manufacturing in semiconductors and electronics.
🔸Data centres & hyperscalers for cloud infrastructure.
🔸AI foundational models to power next-gen innovation.
🔸Application layer driving AI adoption in real-world sectors.
Together, these components will ensure India’s digital infrastructure can meet rising enterprise, government, and consumer needs.
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Demand Rising Faster Than Supply
India is witnessing a surge in data centre investments, but demand growth is outstripping capacity expansion.
In just one year, supply jumped 50% from 75 MW to 114 MW.
Yet, demand surged even higher — from 81 MW to 122 MW (also over 50%).
By 2030, capital expenditure is projected to rise from ₹175 billion to ₹575 billion, reflecting a 23% compound annual growth rate (CAGR).
Industry Leaders: Adani, Nxtra, and Yotta
The report positions Adani Connex, Nxtra (Bharti Airtel), and Sity as major drivers of this infrastructure boom.
More than 1.6 GW of additional capacity will be added to India’s existing 1.3 GW base, with Adani Connex, Nxtra, and Yotta contributing around 860 MW.
This expansion places India firmly on the map as a global cloud and colocation hub.
What’s Driving the Boom?
The growth of India’s cloud and data centre industry is being fueled by:
🔸Exploding data consumption from smartphones, 5G, OTT streaming, and e-commerce.
🔸Rising enterprise cloud adoption across banking, healthcare, and manufacturing.
🔸Policy support around data localization and digital-first governance.
🔸AI & emerging workloads that demand scalable, high-performance infrastructure.
The Road Ahead
While supply is growing rapidly, the report warns that demand will remain ahead of infrastructure buildouts, potentially creating a digital bottleneck.
Still, with major private sector players and strong government backing, India is on track to become a global digital powerhouse, with its trillion-dollar economy anchored by colocation and cloud infrastructure.
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