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Chennai is rapidly emerging as India’s next big data centre hub, thanks to its strategic location, robust infrastructure, and coastal proximity.
Cable Landing Advantage: With the second-largest concentration of cable landing stations in India after Mumbai, Chennai offers unmatched proximity to Southeast Asia’s business and technology corridor.
Policy Support: The Government of Tamil Nadu has introduced strong enablers, including the Tamil Nadu Data Centre Policy 2021 and 2024 data centre incentives, ensuring single-window clearances, tax benefits, land subsidies, and power tariff concessions.
Global Ecosystem: Chennai hosts leading global cloud, OTT, CDN, and ISP players such as Google, Microsoft, Meta, Akamai, Amazon, Valve, and Riot Games, directly on its peering and fibre exchanges.
According to Assocham report, Chennai is India’s second-largest data centre market, with a current colocation capacity of 88 MW.
The market is projected to grow from 202.43 MW in 2025 to 551.15 MW by 2030, at a CAGR of 22.18% (Assocham).
Another forecast estimates expansion from 0.55 thousand MW in 2025 to 1.81 thousand MW by 2031, reflecting a CAGR of 21.78% (Mordor Intelligence). (https://www.mordorintelligence.com/industry-reports/chennai-data-center-market)
By 2030, Chennai is expected to contribute one-fourth of India’s new data centre capacity.
Tamil Nadu’s 34.7 GW of renewable energy assets across wind, solar, and hydro, combined with its position as a power-surplus state, make Chennai one of the most cost-effective and sustainable destinations for data centre investments.