India's data center boom could boost housing demand by 2030
What's the story
India's burgeoning data center ecosystem is poised to significantly impact the country's residential real estate sector, a new report from proptech company Square Yards has revealed. The research shows that the proposed expansion of data centers in India could generate around 433,000 ecosystem jobs and create a demand for an estimated 195 million square feet of housing by 2030.
Market shift
Data centers: Next evolution in real estate growth story
Vivek Agarwal, Co-Founder and CTO of Square Yards, emphasized that India's real estate growth has long been influenced by highways, industrial corridors, airports, and IT parks. However, data centers are now the next evolution in this story.
The report calls the long-term impact of data centers on the ecosystem "The Doughnut Effect," suggesting they could drive housing demand and infrastructure investment across emerging growth corridors.
Urban expansion
'Golden Ring' around data center campuses to see most impact
The report predicts that the strongest residential impact will not be within data center campuses, but in a 5-15km 'Golden Ring' around major facilities.
This area is expected to see infrastructure upgrades, mixed-use developments, residential townships, retail centers, and civic amenities.
As these supporting ecosystems mature, they will create sustained housing demand driven by ancillary employment and economic activity rather than direct workforce concentration.
Infrastructure gap
India's data center capacity lags behind global leaders
Despite generating nearly 20% of the world's digital data, India only accounts for 4% of global data center capacity. This indicates a huge potential for infrastructure expansion.
With AI, cloud computing, and enterprise digitization driving investments, India's installed data center capacity is expected to grow significantly in the coming years.
This will trigger a new wave of infrastructure-led real estate development.
Regional impact
Maharashtra will see biggest demand for new homes
The report highlights that Maharashtra will see the biggest demand for new homes (over 54 million square feet), followed by Karnataka, Andhra Pradesh, Uttar Pradesh, Telangana, and Tamil Nadu.
This growth isn't just limited to metros but is also expected in smaller cities due to investments in AI and cloud technology.