City
As India intensifies its goal of becoming a global hub for data centres, new investment opportunities are emerging that could change the way people live, work, and invest. The next wave of housing demand in India may not be solely influenced by expanding business districts or industrial corridors; it is increasingly likely to be shaped by the growth of the country’s digital infrastructure.
India currently generates nearly 20% of the world’s data, yet it only accounts for around 4% of global data centre capacity. Bridging this gap will require significant investment in hyperscale facilities, power infrastructure, fibre connectivity, and supporting utilities. While these data campuses typically operate with minimal on-site workforces, their true economic value lies in the ecosystems they create. These ecosystems foster ancillary industries, logistics networks, commercial activities, and institutional capital, all of which collectively boost sustained residential demand in the surrounding areas.
The Square Yards Data Centre Report provides an in-depth analysis of the relationship between data centres and urban growth in India. It highlights that over 250 data centre facilities are proposed across the country by 2030, which is expected to significantly impact urban development in states such as Maharashtra, Tamil Nadu, Telangana, Karnataka, and Uttar Pradesh, as well as in emerging Tier-2 markets like Andhra Pradesh, Gujarat, West Bengal, Haryana, and Odisha.
Unlike traditional urban centres that rely on employment, such as IT parks or airports, data centres serve as infrastructure anchors. Their influence extends outward through improvements in power supply, fibre networks, and institutional investment. This creates what the report calls a “Doughnut Effect,” where the most significant real estate appreciation occurs not on the campus itself, but within a 5–15 km radius known as the Golden Ring. This area becomes a hub for housing, retail, and commercial developments that can grow more effectively around the new infrastructure.
For developers, homebuyers, investors, and policymakers, understanding where these infrastructure-driven growth corridors are emerging will be crucial for identifying the next wave of residential opportunities in India.
