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Fueled by Chennai, Bengaluru and Hyderabad, the data centre market in south India is projected to grow 65 per cent by 2030, a report showed on Thursday. 

This surge is supported by substantial government incentives, strategic infrastructure investments and a rising demand for digital services, according to the report by Colliers India.

The combined installed data centre capacity in Chennai, Bengaluru, and Hyderabad stands at nearly 200 MW.

"This foundation is set to be significantly bolstered, with 190 MW currently under construction and an additional 170 MW planned," according to the report.

These developments are expected to increase the total capacity by 80 per cent over the next few years, underscoring the region's strategic importance in supporting global digital infrastructure.

"With sustained government support and continuous infrastructure development, South India is set to become a global data centre hub," said Swapnil Anil, Executive Director & Head of Advisory Services, Colliers India.

Chennai currently has an installed capacity of 87 MW, with 156 MW under construction and 104 MW planned.

Bengaluru leverages its strong IT ecosystem. The city currently has an installed capacity of 79 MW, with 10 MW under construction and 26 MW in the planning stages.

Hyderabad is rapidly emerging as a data centre hotspot. The city has an installed capacity of 47 MW, with 20 MW under construction and 38 MW planned.

The monthly recurring charges for data centres in South India are competitive, ranging between Rs 6,650 – Rs 8,500 per kW per month according to the usage, offering significant value for money, said the report.