




New Delhi: India's data centre sector is witnessing unprecedented growth, with the country's development pipeline expanding to 8.33 gigawatts (GW)—more than five times its current operational capacity of 1.6 GW, according to a report released by Knight Frank India on Saturday.
The report attributes the rapid expansion to the increasing adoption of artificial intelligence (AI), rising demand for cloud services, and stricter data localisation requirements, making India a preferred destination for hyperscale digital infrastructure investments.


At present, 0.32 GW of data centre capacity is under construction, while 2.92 GW has reached the committed development stage. An additional 5.41 GW is in the early planning phase, highlighting strong investor confidence in India's fast-growing digital economy.
The report noted that global hyperscalers, cloud service providers, AI infrastructure companies, and institutional investors are steadily increasing their investments to meet the country's surging demand for digital infrastructure.
Nearly two-thirds of the planned capacity is still in the early stages of development, reflecting long-term optimism about India's technology-driven growth.
According to Viral Desai, International Partner and Senior Executive Director at Knight Frank India, Mumbai remains the country's leading hub for hyperscale data centres because of its superior connectivity, accounting for a future development pipeline of 3.75 GW.

Hyderabad has emerged as the second-largest upcoming data centre market with a pipeline of 1.93 GW, driven by its growing appeal as a hub for AI infrastructure.
Meanwhile, Chennai is strengthening its position as a key gateway for international data traffic through its strategic subsea cable connections.
The report also highlighted Visakhapatnam (Vizag) as one of India's fastest-growing greenfield data centre destinations, supported by favourable government policies, the availability of large land parcels, and planned subsea cable connectivity.
Other major markets, including the National Capital Region (NCR), Pune, and Bengaluru, are also witnessing steady expansion as developers diversify data centre capacity across multiple cities to support India's rapidly growing digital ecosystem.
With inputs from IANS
