New Delhi, August 3: A report released on Monday indicates that India’s rapidly expanding data center projects could serve as a foundation for significant changes in employment, infrastructure, and the real estate sector in the coming years. According to the report, approximately 9,030 megawatts of proposed data center capacity in the country could generate around 433,000 direct and indirect job opportunities by 2030. Additionally, there is an estimated demand for about 195 million square feet of residential space.
The report by real estate consulting firm Square Yards states that India currently produces nearly 20% of the world’s digital data, yet holds only a 4% share of the global data center capacity. This discrepancy highlights the vast potential for expanding data center infrastructure in the country.
The report notes that investments in the data center sector are steadily increasing due to the rapid advancements in artificial intelligence (AI), cloud computing, and enterprise digitization. This trend is likely to lead to a significant rise in the country’s established data center capacity, giving rise to a new wave of infrastructure-based real estate development.
Experts believe that data centers do not just serve digital services; they also attract the development of power supply networks, fiber connectivity, logistics facilities, and business services in their vicinity. Over time, these areas evolve into new urban economic centers.
The report emphasizes that the long-term impact of data centers extends far beyond the tech sector. They act as catalysts for residential demand, infrastructure investment, and new urban expansion. This, in turn, boosts economic activities in emerging development corridors and creates new job opportunities.
According to the report, areas within a 5 to 15-kilometer radius of large data center complexes will benefit the most. This zone is referred to as the “Golden Ring,” where improvements in roads, electricity, and communication facilities are likely to spur the rapid development of mixed-use projects, residential townships, retail markets, social amenities, and civic services.
As these supporting economic ecosystems mature, employment will increase not only for direct employees but also in related sectors. This is why demand for residential properties is expected to remain strong over the long term.
Vivek Agarwal, co-founder and Chief Technology Officer of Square Yards, stated that highways, industrial corridors, airports, and IT parks have accelerated real estate development in India over the past few decades. Now, data centers are poised to become the next critical phase in this development journey.
He added that investments in power, fiber connectivity, and logistics infrastructure enhance the confidence of industries, developers, and institutional investors, which is directly reflected in residential and commercial development around these emerging digital corridors. In the coming years, data centers could become significant infrastructural hubs that shape the expansion and growth of cities.
At the state level, Maharashtra is expected to reap the most benefits, with data center investments potentially generating over 54 million square feet of residential demand. Following Maharashtra, Karnataka is projected to see around 28 million square feet, Andhra Pradesh over 23 million square feet, Uttar Pradesh approximately 22.7 million square feet, Telangana about 21.6 million square feet, and Tamil Nadu nearly 19.4 million square feet of residential demand.
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