India's data centre capacity could reach 15 GW in five years on AI demand: L&T Vyoma
India’s data centre capacity may grow to 10-15 GW in five years due to rising AI demand, according to L&T Vyoma CEO Prashant Jain, who cites global supply constraints and domestic digital growth as key drivers. The company plans to expand GPU-powered AI infrastructure, including a 30 MW operational centre in Chennai and a 35 MW facility in Mumbai, while targeting cities like Visakhapatnam for future hubs.
India’s data centre capacity could reach 10-15 gigawatts within five years as artificial intelligence adoption accelerates globally, according to Prashant Jain, CEO and Managing Director of L&T Vyoma. Jain attributes the growth to rising demand for AI-focused infrastructure, constraints in overseas markets, and India’s expanding digital economy. He noted that data localisation requirements and geopolitical shifts are also pushing companies toward India, where power availability issues in the US further drive demand. L&T Vyoma, the data centre arm of Larsen & Toubro, currently operates a 30 MW facility in Chennai and is constructing a 35 MW centre in Mumbai. The company recently launched an AI factory initiative in partnership with Nvidia, aiming to serve hyperscale customers through colocation services and AI computing infrastructure. Jain highlighted that GPU-powered demand far outpaces supply, with clients seeking facilities operational within the year rather than waiting for 18-24 months of traditional construction timelines. The company’s land bank supports up to 5.5 GW of capacity, including 250 MW of power-ready infrastructure. Jain expects AI-focused data centres to differ from conventional edge facilities, requiring substantial investment and execution capabilities. Rising land costs in Mumbai are pushing developers to explore alternative locations, with Visakhapatnam identified as a potential future hub due to its land availability, fibre connectivity, water, and electricity resources. Vaibhav Garg, Director of Infrastructure and Real Assets Investment Banking at Avendus Capital, echoed Jain’s optimism, stating India will benefit from both global AI demand and domestic adoption. Garg predicted a fragmented market with 15-20 major players, noting that the industry’s growth potential allows for broad competition. However, Jain anticipates a distinction between large AI facilities and traditional data centres, with the former demanding higher financial commitments and operational expertise.
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