India’s rapidly growing data centre ecosystem is emerging as a new catalyst for residential real estate, with the proposed 9,030 MW data centre pipeline potentially generating nearly 4.33 lakh jobs and creating demand for over 195 million sq. ft. of housing by 2030, according to a Square Yards report.
India currently generates nearly 20% of the world’s digital data but accounts for only around 4% of global data centre capacity, highlighting significant room for expansion. Rising investments in AI, cloud computing and enterprise digitisation are expected to accelerate this growth.
The impact is likely to extend beyond data centre campuses. Square Yards identifies a 5–15 km “Golden Ring” around these facilities as a potential hotspot for residential and commercial development. As supporting infrastructure such as power, fibre connectivity, logistics and retail expands, these areas could evolve into new urban growth corridors.
Maharashtra is expected to lead residential demand with over 54 million sq. ft., followed by Karnataka, Andhra Pradesh, Uttar Pradesh, Telangana and Tamil Nadu.
The growth could also benefit emerging locations such as Noida, Visakhapatnam and GIFT City, while Tier-II and Tier-III cities may increasingly participate in India’s next wave of infrastructure-led urbanisation.
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