India’s hyperscale data centre industry is increasingly prioritising renewable power deals, with capacity set to quadruple by 2030 amid soaring demand driven by AI and cloud services. Major players such as Digital Edge and Meta are leading the shift towards cleaner energy solutions, reflecting a broader industry move towards sustainable expansion.
India’s data centre market is moving into a more industrial phase, with hyperscale operators increasingly treating power strategy as a central part of expansion planning rather than an afterthought. Industry estimates cited by India Brand Equity Foundation suggest capacity could move beyond 3GW by 2028 as artificial intelligence, cloud computing and larger enterprise workloads feed demand. Mumbai remains the largest hub, but Chennai, Hyderabad and Delhi-NCR are also drawing fresh investment as developers compete on land, fibre, grid access and energy reliability.
That growth is now being paired more deliberately with direct renewable power deals. Digital Edge has signed an 83MW solar power purchase agreement with Hexa Climate Solutions for the first phase of its 350MW AI-ready campus in Navi Mumbai, with supply due to begin in December 2026. The company says the arrangement should offset about 100,000 tonnes of carbon dioxide each year, underlining how sustainability targets are becoming embedded in project design rather than added later.
The broader pattern reflects a market where data centre operators want cleaner and more predictable electricity costs, while renewable developers are looking for long-term buyers that can support financing for new capacity. Meta has also moved on this front, partnering with CleanMax and Fourth Partner Energy for 1GW of renewable energy in India, a sign that large international technology groups are shaping the local power market as they expand their digital infrastructure footprints. Analysts quoted by Business Standard have projected installed Indian data centre capacity could rise from 1.5GW in 2025 to 6.5GW by 2030, a fourfold increase driven by AI, cloud services and digital consumption.
Even so, solar power by itself cannot meet the 24-hour load profile of hyperscale facilities, which depend on uninterrupted operations for servers, cooling and networking. That is pushing interest towards battery storage, hybrid plants and tighter grid coordination, with utilities and transmission operators likely to face mounting pressure to reinforce substations and distribution networks around emerging clusters. Research summaries from the sector also suggest the market could reach $22 billion by 2030, with foreign capital continuing to play a major role in funding the build-out.
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