India’s Data Centre Expansion Could Create 195 Million Sq Ft of Housing Demand by 2030

India’s rapidly expanding digital infrastructure could become an important new driver of residential real estate, with a proposed data centre capacity addition of 9,030 MW potentially creating demand for around 195 million square feet of housing by 2030, according to research by Square Yards. The expansion could also support approximately 4.33 lakh ecosystem jobs across major urban markets.

The findings point to a broader shift in the way India’s cities could grow. While technology parks, highways, airports and industrial corridors have traditionally influenced real estate development, the increasing concentration of data infrastructure may create another type of urban growth centre.

Data centres could influence housing beyond their campuses

Data centres are highly infrastructure-intensive facilities and require reliable electricity, fibre connectivity, logistics and other supporting services. However, the residential impact is not expected to be concentrated directly around the campuses.

Square Yards’ research highlights a potential 5-km to 15-km surrounding zone where the wider economic benefits could become more visible. The report refers to this area as a “Golden Ring”, where improved infrastructure and growing business activity could encourage residential projects, mixed-use developments, retail facilities and civic amenities.

This means the housing opportunity associated with data centres could develop through the wider ecosystem rather than simply through employees working inside the facilities.

As supporting businesses emerge, demand for homes can increase among workers in construction, maintenance, power, logistics, technology services, security, hospitality, retail and other related industries. Over time, these activities can encourage developers to enter previously less-developed urban corridors.

Maharashtra expected to lead residential demand

The projected housing requirement is spread across several states, although Maharashtra is expected to account for the largest share.

According to the Square Yards research, Maharashtra could see more than 54 million sq ft of residential demand linked to proposed data centre expansion. Karnataka follows with nearly 28 million sq ft.

Andhra Pradesh is projected to generate more than 23 million sq ft of housing demand, while Uttar Pradesh could see approximately 22.7 million sq ft. Telangana is estimated at around 21.6 million sq ft, followed by Tamil Nadu with about 19.4 million sq ft.

The distribution is significant because it suggests that the real estate impact of digital infrastructure may extend well beyond India’s most established technology hubs.

Why India has room for further data centre growth

India’s growing digital economy is one of the major factors supporting the expansion of data infrastructure. The report notes that India generates nearly 20% of the world’s digital data, while accounting for only about 4% of global data centre capacity.

This gap indicates considerable potential for additional infrastructure investment. The increasing use of artificial intelligence, cloud computing and enterprise digital services is expected to support further demand for data storage and processing capacity.

As new facilities are developed, investment may also flow into power infrastructure, connectivity networks, roads and logistics systems. Such improvements can make surrounding locations more attractive to businesses and residential developers.

Job creation could strengthen local housing markets

The proposed expansion is estimated to generate about 4.33 lakh ecosystem jobs across major metropolitan markets.

Data centres themselves may not require extremely large permanent workforces compared with traditional industries. Their wider economic effect, however, can be substantial because the facilities depend on an extensive network of supporting services and infrastructure.

This distinction is important for the housing market. Residential demand could come not only from direct data centre employees but also from people working in the broader ecosystem created around these facilities.

As employment expands, demand for rental housing, apartments, plotted developments and other forms of residential accommodation could rise in nearby areas.

Tier-2 and Tier-3 cities may also benefit

Another important implication of the research is that the data centre-led real estate opportunity may not remain limited to major metros.

According to Square Yards, smaller cities could also benefit as digital infrastructure expands. The development of new facilities can bring investment into areas that previously had limited large-scale commercial activity.

For emerging cities, such projects can potentially accelerate improvements in utilities, connectivity and transport while creating new employment opportunities. These changes can, in turn, encourage residential and commercial development.

A new influence on India’s urban expansion

The projected 195 million sq ft housing requirement illustrates how closely digital infrastructure and real estate could become linked over the coming years.

The key opportunity may not simply be identifying locations where data centres are being built. Instead, developers and investors may increasingly look at the surrounding infrastructure ecosystem, including transport links, power availability, connectivity and employment growth.

If the projected data centre investments materialise as expected, their influence could extend far beyond technology. New digital infrastructure could become an anchor for housing, retail, commercial activity and urban expansion, creating fresh growth corridors across several Indian states by 2030.