India’s data centre construction and infrastructure value chain could emerge as a USD 90 billion opportunity by FY35, driven by the rapid expansion of digital infrastructure, rising artificial intelligence workloads and growing demand for cloud and data storage capabilities, according to a KPMG in India report.
The opportunity extends beyond the construction of data centre facilities to a wider ecosystem covering architectural and engineering design, construction, power infrastructure, cooling systems, networking, security and other specialised services. KPMG estimates that the cumulative construction-related and infrastructure value chain opportunity could reach around USD 30 billion by FY30 before rising to USD 90 billion by FY35.
India’s data centre market is entering a period of significant expansion as enterprises and hyperscalers increase their investments in AI, cloud computing and digital services. The growth in computing requirements is also changing the technical specifications of facilities, particularly with the increasing deployment of high-density computing infrastructure.
Power availability and efficiency are becoming critical considerations for the sector. Data centres require reliable and continuous electricity supply, while the growing density of computing equipment is increasing the requirement for sophisticated power management and cooling infrastructure. This is creating opportunities across both internal data centre systems and supporting external infrastructure.
Cooling is another major component of the emerging value chain. As AI workloads require higher computing density, data centre operators are increasingly required to adopt advanced thermal-management solutions. The resulting demand extends to cooling equipment, associated electrical systems, specialised engineering and installation services.
The expansion is also creating opportunities for companies involved in design, construction and project management. As data centre projects become larger and more technically complex, developers are expected to rely increasingly on specialised partners capable of coordinating multiple infrastructure requirements across the project lifecycle.
India’s cost competitiveness and large technology talent pool are further supporting its emergence as a data centre investment destination. KPMG estimates that India’s data centre market could expand from around USD 1.7 billion in FY26 to approximately USD 6.8 billion by FY30, while the country’s share of global data centre capacity could rise from around 2–3% in FY26 to nearly 5% by FY30.
The expansion is being supported by growing AI adoption, cloud services, data localisation requirements and increasing digital consumption. These trends are expected to sustain demand for additional capacity while also increasing the need for supporting infrastructure across power, cooling, connectivity and security.
The scale of the opportunity is also pushing the industry towards a more integrated ecosystem. KPMG highlights the need for closer collaboration among developers, technology providers, infrastructure companies, engineering firms and specialised service providers to deliver next-generation data centre infrastructure at the required speed and scale.
As India expands its digital infrastructure footprint, data centres are increasingly being viewed as critical infrastructure rather than standalone technology assets. The resulting investment opportunity is therefore expected to spread across the broader construction and infrastructure ecosystem, creating significant opportunities for companies participating in the design, development, power, cooling, connectivity and operational requirements of the sector.
