Why 2025 Became India’s Breakout Year For Global Data Centres |
With global tech giants increasingly zeroing in on India as a key destination for data centre investments, 2025 turned out to be a net positive year for India’s tech ecosystem, despite a turbulent year on the geopolitical front.
The year can be seen both as a catalyst and an outcome of efforts by the central government and industry stakeholders to simplify policies, improve infrastructure, and make it easier to set up and scale data centre operations in India.
As a result, tech giants like OpenAI, Microsoft, Google, Meta, to name a few, announced plans to set up data centres in India.
Notably, the global traction for India-based data centres is also a result of a sustained policy push. After granting ‘infrastructure’ status to data centres in 2022, the government is now considering tax exemptions and other fiscal incentives to lower operating costs, ease capital deployment and accelerate large-scale capacity build-outs across key markets.
“Data sovereignty remains a core priority under the broader Digital India agenda, with policymakers signalling a strong preference for critical data to be stored and processed within the country. This creates a direct incentive for hyperscalers to localise infrastructure,” data centre technology company Submer’s India head Dev Tyagi said.
While these efforts were going on for a while now, 2025 boomed and changed the global perspective on India’s data centre outlook. The trend was also driven by the global boost in AI adoption and switch to adaptation of Cloud usage.
As per the Economic Survey 2024-25, India’s data centre market is projected to touch $11.6 Bn by 2032, at a CAGR of 10.98% from $4.5 Bn in 2023.
Let’s dive deeper into how 2025 welcomed data centre boom in India
Why India’s Data Centre Landscape Now Matters More
The AI conversation has evolved in waves — first curiosity, then concern around deepfakes, followed by fears of job losses. The year 2025, however, represents a pivot towards maturity, as companies move beyond broad debates to deploy targeted AI capabilities with applications that cut across........