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Data centres to spur 195 million sq ft housing demand by 2030

2026-08-05

India's expanding data centre ecosystem could generate demand for 195 million sq ft of residential space by 2030, driven by the creation of nearly 433,000 ecosystem jobs, according to a report by proptech firm Square Yards.

The report estimates that the country's proposed 9,030 MW data centre pipeline will catalyse housing demand by attracting investments in power, fibre connectivity, logistics and commercial infrastructure, extending the impact of digital infrastructure beyond technology assets.

It notes that while data centres employ relatively few people directly, they stimulate broader economic activity and urban development by encouraging the growth of supporting businesses and services.

According to the report, the strongest residential demand is expected to emerge within a 5–15 km "Golden Ring" around major data centre clusters, where infrastructure upgrades, mixed-use developments, retail centres and civic amenities are likely to drive long-term housing demand.

Among the states, Maharashtra is projected to generate more than 54 million sq ft of residential demand, followed by Karnataka (nearly 28 million sq ft), Andhra Pradesh (over 23 million sq ft), Uttar Pradesh (about 22.7 million sq ft), Telangana (21.6 million sq ft) and Tamil Nadu (19.4 million sq ft).

Vivek Agarwal, Co-founder and Chief Technology Officer, Square Yards, said data centres are emerging as the next major infrastructure anchor after highways, airports and IT parks, supporting long-term residential and commercial development through investments in essential infrastructure.

The report adds that emerging locations such as Visakhapatnam, Noida and GIFT City could benefit from sustained institutional investment and infrastructure-led urban expansion, while Tier-II and Tier-III cities are also expected to witness increased residential activity.

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