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Data centres make applications possible at scale: they supply the computing, storage, and network-connected infrastructure that software needs to run and handle data. In India, this connection is visible in government services such as e-Office and e-Courts, in digital payment and identity systems, and across financial and enterprise applications. The facilities are enabling infrastructure—not the applications themselves—and their capacity, location, reliability, security, and resource use all affect how digital services can be delivered.
What data centres do for applications
An application is the service people use, such as a government portal, a banking system, or a workplace tool. To function, it must run on computing resources, store information, and process requests. Data centres house those resources and connect them to networks so users and other systems can reach them.
The Government of India’s Economic Survey 2025–26 describes data centres as supporting application hosting, data processing, and storage for government platforms, financial services, enterprises, and citizen-focused applications. When infrastructure can be provisioned and operated reliably, organisations have a foundation for deploying services and responding to demand. A data centre alone does not determine an application’s speed or uptime: those also depend on software design, network paths, operations, and the service provider.
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National Data Centres and public-sector applications
The National Informatics Centre (NIC) describes National Data Centres in Delhi, Pune, Hyderabad, and Bhubaneswar, as well as 37 smaller data centres in state capitals. NIC says these facilities form the core of government e-governance infrastructure. It identifies e-Office, e-Courts, and e-Transport as national projects whose ICT infrastructure is hosted or enhanced through its services.
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NIC also describes government cloud and co-location services, and reports more than 370 applications with over 1,080 virtual servers on mini clouds. These are figures reported by NIC for its services, not a census of all applications or data centres in India.
MeghRaj: cloud services for government
MeghRaj, also called GI Cloud, is the Government of India’s cloud initiative for central, state, and union-territory departments. Its purpose is to provide scalable cloud services and help departments deploy e-governance applications. Cloud services can offer capabilities such as self-service provisioning and scaling resources when needed, subject to the service and application design.
A December 12, 2025 government release describes MeghRaj features including elasticity, scalability, pay-per-use metering, self-service provisioning, rapid application deployment, and on-demand provisioning. It reports 2,170 Ministries/Departments with cloud-based applications hosted on MeghRaj and 26 empanelled cloud service providers. The release says the providers were audited by STQC against named ISO standards. These dated government-reported figures do not mean every ministry application is hosted on MeghRaj, nor do they establish the performance of each application.
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What India’s capacity figures say—and why they differ
Published estimates use different dates and labels, so they should be read as separate snapshots rather than as one directly comparable time series.
| Measure | Reported figure | Source and qualification |
|---|---|---|
| Installed data-centre capacity | About 1,280 MW as of June 2025 | Government of India, Economic Survey 2025–26, citing industry estimates. |
| Data-centre count | Around 130 privately operated and 49 government-agency data centres as of June 2025 | Government of India, Economic Survey 2025–26, citing industry estimates. |
| Operational stock | About 1,530 MW and 23 million square feet, January–September 2025 | CBRE India Research, 2025 year-to-date market update. “Operational stock” is not the same label as the Survey’s installed capacity. |
| Capacity concentration | Nearly 90% in Mumbai, Chennai, Delhi-NCR, and Bengaluru | CBRE India Research, 2025 year-to-date market update. |
| Investment commitments | Nearly USD 94 billion between 2019 and September 2025 | CBRE India Research, 2025 year-to-date market update. Commitments are not equivalent to completed spending or operating capacity. |
| Installed data-centre power capacity | 1.57 GW as of August 2026 | Government of India Press Information Bureau, September 14, 2026 backgrounder. |
| Projected capacity by 2030 | Around 4 GW | Government of India, Economic Survey 2025–26, citing industry estimates. |
| Projected capacity by 2030 | Nearly 8 GW | Government of India Press Information Bureau, September 14, 2026 backgrounder. This later projection differs from earlier forecasts and is not a settled outcome. |
| Potential electricity demand | 17 GW by 2031–32 | Central Electricity Authority estimate reported by the Government of India Press Information Bureau, September 14, 2026. This is projected demand, not present consumption. |
The estimates are not a harmonised series: dates, labels, and source framings differ. For example, the Economic Survey’s June 2025 installed-capacity figure and CBRE’s January–September operational-stock figure should not be treated as contradictory measurements of an identical category. The later August 2026 installed-capacity figure is another dated snapshot. Forecasts also vary; their attribution and publication date matter when discussing the scale of future expansion.
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Why capacity and location matter to digital services
Room to host and scale applications
More infrastructure can support organisations as they digitise services, move workloads to cloud environments, or handle computing-intensive uses such as AI, Internet of Things (IoT) systems, and 5G-related workloads. Capacity is only one part of readiness: applications also need suitable architecture, network access, security, and competent operations.
Connectivity and geographic concentration
CBRE’s 2025 snapshot places nearly 90% of existing capacity in four metropolitan areas. Its market update points to undersea cable landing stations, fibre connectivity, policy, and financial ecosystems as factors associated with established hubs. Concentration does not by itself prove that an application will have lower latency or better reliability; those outcomes depend on the application’s users, network routes, architecture, and redundancy.
Availability, security, and governance
NIC cites round-the-clock operations and on-site staff, while the MeghRaj release describes layered security. These describe operating approaches, not guarantees against outages, attacks, or data loss. For an application, practical questions include how it is monitored, how access is controlled, how data is backed up, how recovery is tested, and which organisation is accountable for protecting and governing the data.
Power, cooling, and responsible growth
Data centres need continuous electricity to run computing equipment and cooling systems. The projected 17 GW of potential electricity demand by 2031–32, reported by the PIB from a Central Electricity Authority estimate, signals a planning challenge; it is not a measure of what facilities use today.
The September 14, 2026 PIB backgrounder discusses power, carbon, cooling, and water-efficiency measures, building codes, renewable-energy initiatives, and different cooling technologies. These issues matter because infrastructure expansion must be matched with reliable power and careful management of energy, cooling, and water. A facility’s usefulness for applications cannot be assessed solely by its computing capacity.
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What to consider when evaluating infrastructure for an application
There is no single data-centre feature that guarantees a good application experience. Organisations choosing among government cloud, private infrastructure, or commercial cloud services can assess the dimensions that connect infrastructure decisions to service outcomes:
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- Capacity and scaling: whether computing and storage can accommodate expected demand and how additional resources are provisioned.
- Availability and recovery: what operational arrangements, backups, and disaster-recovery plans support continuity.
- Security and governance: how identities, access, data handling, and accountability are managed.
- Energy and resource efficiency: how power sourcing, cooling, and water use are addressed.
- Service model: whether government cloud, privately managed infrastructure, or a commercial cloud arrangement fits the application’s requirements and responsibilities.
These are evaluation dimensions, not a vendor ranking. The cited sources do not provide a like-for-like comparison of providers or evidence to name one as best for Indian applications.
Policy and regulatory context
The September 2026 PIB backgrounder says data centres were included in the Harmonized List of Infrastructure in Union Budget 2022–23. It also describes a tax holiday until 2047 for eligible foreign cloud providers using India-based data-centre infrastructure under the Union Budget 2026–27 framework. These are time-sensitive policy summaries; eligibility and applicable conditions depend on the current official rules.
The Telecom Regulatory Authority of India’s data-centre page lists a consultation paper released December 16, 2021, recommendations released November 18, 2022, and a response to a Department of Telecommunications back-reference released November 17, 2025. The index confirms regulatory proceedings concerning data centres, content delivery networks, and interconnect exchanges; it does not by itself establish the final status or legal force of each recommendation.
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