India's data centre expansion may generate over 4.3 lakh jobs by 2030: Report

New Delhi: India's rapidly expanding data centre sector could create nearly 4.33 lakh jobs and drive demand for around 195 million square feet of residential space by 2030, according to a report released by real estate consultancy Square Yards on Monday.

The report estimates that the country's proposed data centre pipeline of nearly 9,030 MW will not only strengthen digital infrastructure but also fuel large-scale urban and real estate development.

Despite generating nearly 20 per cent of the world's digital data, India currently accounts for only 4 per cent of global data centre capacity, highlighting significant potential for future expansion.

According to the report, growing investments in artificial intelligence (AI), cloud computing and enterprise digitisation are expected to substantially increase India's installed data centre capacity in the coming years.

Beyond supporting the digital economy, data centres are expected to spur the development of power infrastructure, fibre connectivity, logistics networks and commercial services, transforming nearby areas into thriving urban hubs.

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The report noted that the biggest residential impact is likely to be seen within a 5-15 km "Golden Ring" around major data centre facilities, where infrastructure upgrades, integrated townships, mixed-use projects, retail centres and civic amenities are expected to develop rapidly.

It added that the resulting housing demand will be driven not only by direct employment but also by the broader economic activity and businesses that emerge around these digital infrastructure hubs.

Vivek Agarwal, Co-Founder and Chief Technology Officer of Square Yards, said data centres are becoming the next major drivers of real estate growth after highways, airports, industrial corridors and IT parks.

Among states, Maharashtra is expected to witness the highest residential demand at over 54 million square feet, followed by Karnataka (nearly 28 million sq ft), Andhra Pradesh (over 23 million sq ft), Uttar Pradesh (around 22.7 million sq ft), Telangana (21.6 million sq ft) and Tamil Nadu (19.4 million sq ft).

With inputs from IANS