DATA CENTRES COULD CREATE 195 MILLION SQ. FT HOUSING DEMAND BY 2030

India’s data centre boom is beginning to reshape the real estate map, with digital infrastructure emerging as a new driver of housing demand beyond the country’s established IT corridors. A new report by proptech firm Square Yards estimates that India’s proposed data centre pipeline of around 9,030 MW could generate nearly 4.33 lakh ecosystem jobs, translating into about 195 million sq. ft of residential demand by 2030. The finding points to a wider shift in the way new urban growth could take shape. Data centres may occupy relatively limited land and employ fewer people directly than traditional technology campuses, but the infrastructure they require can trigger investment in power, fibre connectivity, logistics, commercial establishments and other services around them.

Beyond the data centre campus
India currently generates nearly 20% of the world’s digital data, while accounting for only about 4% of global data centre capacity, highlighting the room for further expansion. The growth is being fuelled by artificial intelligence, cloud computing and enterprise digitisation, which are prompting companies to invest heavily in digital infrastructure. As new facilities come up, however, their influence is expected to extend 15 well beyond the boundaries of the campuses. The Square Yards report identifies a 5-15 km “Golden Ring” around major data centres as the area likely to see the strongest residential impact. Infrastructure upgrades, mixed-use projects, housing townships, retail centres and civic amenities could gradually take shape within these surrounding zones. The resulting housing demand would therefore be less about employees working inside a data centre and more about the wider economic activity that develops around it. Vivek Agarwal, Co-Founder and Chief Technology Officer, Square Yards, said data centres could represent the next stage in infrastructure-led urban growth, following highways, industrial corridors, airports and IT parks. He said investments in power, fibre connectivity and logistics could build confidence among businesses, developers and institutions, eventually supporting residential and commercial development around these emerging digital corridors.

New growth corridors emerge
Maharashtra is expected to see the largest residential impact, with more than 54 million sq. ft of potential demand, followed by Karnataka at nearly 28 million sq. ft. Andhra Pradesh, Uttar Pradesh, Telangana and Tamil Nadu are also expected to see substantial housing demand linked to the expanding digital infrastructure ecosystem. The implications could be particularly significant for locations outside established metropolitan markets. Visakhapatnam, Noida and GIFT City, along with other infrastructure-rich destinations, are emerging as potential beneficiaries as connectivity, utilities and institutional investment improve. For the property market, this could create a new set of growth corridors where housing demand follows digital infrastructure rather than conventional employment centres. Sunita Mishra, Vice President – Research & Insights, Square Yards, said housing demand consistently follows areas with strong employment potential. She expects data centres to influence residential development not only in major cities but also in Tier-2 and Tier-3 markets.