India's Data Center Sector Is Entering A Defining Decade

Valued at approximately USD 8.94 billion in 2025 and projected to exceed USD 31 billion by 2035, the data center sector is witnessing unprecedented acceleration in both capital deployment and infrastructure build-out. Operational capacity has crossed 1,500 MW, with nearly 4,000 MW under construction or in advanced stages of development, placing India on a steep capacity expansion trajectory through 2026 and beyond.

However, what distinguishes this growth cycle from previous infrastructure waves is the regulatory inflection point. The notification of the Digital Personal Data Protection Rules, 2025 has introduced a time-bound compliance framework culminating in May 2027. Data center operators, hyperscalers, cloud providers, financial institutions, and enterprise occupiers must align infrastructure, contracts, and governance structures within this transition window. Penalties for non-compliance are significant, and sector-specific localisation mandates continue to independently drive domestic infrastructure demand.

Simultaneously, hyperscaler commitments, AI-led compute demand, renewable energy procurement strategies, and foreign direct investment flows are reshaping commercial models across colocation, build-to-suit, and powered shell formats. The convergence of compliance-driven demand and capital inflows has created a compressed opportunity cycle for investors and operators positioning ahead of the 2027 deadline.

KSK'sIndia Data Center Report 2026 – Legal, Regulatory & Investment Landscapeexamines these structural shifts in detail – covering regulatory frameworks, localisation mandates, contractual trends, land and power considerations, and transaction structuring insights for institutional investors and operators.

For a deeper understanding of the legal architecture and investment outlook shaping India's data infrastructure story, we invite you to read the full report.

https://ksandk.com/wp-content/uploads/KSK_India_DC_Report_2026.pdf