India's data centre value chain seen touching USD 90 billion by FY35

India's data centre construction and infrastructure value chain could expand into a USD 90 billion opportunity by FY35, more than tripling from an estimated USD 30 billion by FY30, as capacity additions pull in spending across construction, power, cooling, networking and security.

Installed data centre capacity in the country is projected to reach 7-7.5 GW by 2030, a build-out that is expected to lift downstream expenditure well beyond the facilities themselves.

Within the value chain, design and construction form the largest slice at about USD 27 billion by FY35, followed by cooling infrastructure at USD 24 billion and power infrastructure inside data centres at USD 18 billion. Power infrastructure outside data centres is put at another USD 12 billion, while network infrastructure and security are estimated at roughly USD 5 billion each.

The report describes a decade-long structural opportunity for the full engineering and infrastructure value chain as the sector scales capacity to meet demand.

Artificial intelligence is reshaping infrastructure requirements, pushing up demand for higher-capacity power systems, advanced cooling and specialised equipment. AI racks typically need 50-60 kilowatt of power per rack, against 8-12 kilowatt for non-AI workloads, raising specifications for in-facility power infrastructure. Cooling is likewise moving away from traditional air-based systems towards water and liquid cooling, with liquid cooling emerging as a fast-growing segment on the back of AI workloads.

The expansion is expected to open opportunities for existing suppliers as well as domestic firms looking to build capabilities in specialised areas. India already has a relatively strong domestic base in civil construction, cooling towers and fibre-optic cable manufacturing, while advanced grid systems, battery energy storage systems, precision cooling and active network hardware remain more import-dependent.

Realising the opportunity will require coordinated execution among developers, engineering and construction companies, equipment manufacturers, utilities and regulators, particularly to shorten construction timelines and address delays in securing power. Execution capability in electrical, mechanical and commissioning segments is expected to be the primary differentiator as capacity expands.