Maharashtra Commands Two-Thirds of India's Data Centre Capacity
Maharashtra has solidified its position as the undisputed leader in India's data centre sector, currently hosting approximately 66 percent of the nation's total capacity. This revelation was made by Kaustubh Dhavse, Chief Advisor to Maharashtra Chief Minister Devendra Fadnavis, during the 7th CII Datacenter Blueprint Summit 2026 held in Mumbai's Bandra Kurla Complex.
Strategic Advantages Fuel State's Dominance
Dhavse attributed Maharashtra's preeminence to several key factors. The state benefits from natural advantages, including the landing of subsea cables and a robust power infrastructure. He emphasized that Maharashtra offers a significant bouquet of green power, with landed costs ranging between 3 to 4 cents per unit, translating to approximately 4 to 7 rupees. This cost-effectiveness is crucial for the data centre industry, which is highly resource-intensive, requiring substantial power and water resources.
"Data centre industry is a very power-intensive, water-intensive industry and we have all the natural resources. That is why we are the country leader," Dhavse stated. He expressed confidence that under Chief Minister Fadnavis's leadership, Maharashtra is poised to become one of the top global hubs for data centres.
Projected Growth and Capacity Expansion
Looking ahead, Dhavse projected that Maharashtra alone could achieve between 3.9 and 4.8 gigawatts of data centre capacity by 2029. He noted the variability in data centre sizes, from 10 megawatts up to one gigawatt, making it challenging to predict the exact number of facilities. However, he assured that the state has the necessary policy and infrastructure support to implement projects efficiently and on schedule.
Echoing this optimistic outlook, Manoj Paul, Chairman of the Confederation of Indian Industry (CII) Western Region Taskforce on Datacenters for 2025-26, highlighted the rapid growth in demand for data centre capacity across India. He reported a compound annual growth rate (CAGR) of 25 percent over recent years, with expectations for even higher growth in the future. Paul pointed out that India currently consumes only 0.5 percent of its total power for data centres, well below the global average of 3 to 4 percent, indicating substantial room for expansion.
Substantial Investments and Infrastructure Plans
Dr. Deependra Singh Kushwah, Maharashtra's Development Commissioner for Industries, reinforced the state's ambitious plans during the summit. He confirmed that Maharashtra, often referred to as the data centre capital of India, hosts nearly 60 percent of the country's total capacity. Currently, the state has around one gigawatt of capacity, with plans to increase this five to tenfold over the next five to seven years.
"We have signed MoUs for approximately ₹5 lakh crore investment. I am confident that more than 5 gigawatt capacity will be generated by 2030 in terms of data centres in Maharashtra," Kushwah asserted. To support this exponential growth, the state government is committed to doubling its power generation and transmission capacity by 2030, with 50 percent sourced from renewable energy. This initiative ensures that Maharashtra will have sufficient electricity, water, and necessary infrastructure to meet the rising demands of the data centre sector.
Global Context and Future Opportunities
Paul also addressed the impact of geopolitical tensions, noting that as of now, there has been no significant effect on the data centre industry in India. Most equipment does not pass through affected pathways, and the sector is not heavily reliant on impacted resources like gas. This stability, coupled with India's advantages such as low construction costs, competitive power tariffs, and supportive government policies, is accelerating investments in digital infrastructure. Paul suggested that companies may increasingly diversify their infrastructure across locations, potentially opening new opportunities for India to attract more global investments.
In summary, Maharashtra's strategic advantages, coupled with substantial investments and proactive government policies, position it not only as a national leader but also as a burgeoning global hub in the data centre industry. With projections pointing towards massive capacity expansions and a strong focus on sustainable energy, the state is set to play a pivotal role in shaping India's digital future.
