India’s data centre sector is witnessing an unprecedented infrastructure build-up, with the total development pipeline across major markets reaching 8.33 GW (8,326.6 MW) according to Knight Frank India. Driven by accelerating artificial intelligence (AI) adoption, cloud computing growth, digital transformation initiatives and data localisation requirements, the country is rapidly emerging as one of the world’s most attractive destinations for hyperscale digital infrastructure investments.

Knight Frank India cited that India currently has 0.32 GW (322.4 MW) of data centre capacity under construction, while another 2.92 GW (2,920.2 MW) has reached the committed stage. Additionally, 5.41 GW (5,406 MW) of capacity is in the early stages of development, underscoring the depth of future supply planned across the country’s key data centre hubs.

The scale of the pipeline reflects growing confidence among hyperscalers, cloud providers, AI infrastructure operators and institutional investors, who continue to expand their presence in India to cater to rapidly rising digital demand.

Viral Desai, International Partner, Senior Executive Director- Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets & Retail, Knight Frank India, said, “India’s data centre growth story is increasingly becoming a tale of regional specialization. While Mumbai continues to anchor hyperscale deployments owing to its connectivity advantages, Hyderabad is emerging as a preferred AI infrastructure destination, and Chennai is strengthening its role as a strategic gateway for international data traffic from east. At the same time, Vizag has rapidly emerged as one of India’s most active greenfield data centre markets, attracting gigawatt-scale development proposals backed by government support, availability of sizeable land parcels and planned subsea cable connectivity.”

Mumbai Retains Leadership as India’s Largest Data Centre Market

Mumbai continues to dominate India’s data centre landscape, accounting for the largest share of future capacity development. The city’s total pipeline stands at 3.75 GW (3,752.3 MW), comprising 0.17 GW (173 MW) under construction, 1.54 GW (1,543.3 MW) in committed projects and 2.21 GW (2,209 MW) in the early-stage pipeline.

The city’s strategic importance continues to be supported by its status as India’s financial capital, extensive fibre connectivity, robust power infrastructure and concentration of international subsea cable landings, making it the preferred location for large-scale cloud and AI deployments.

Hyderabad Emerges as a Major Hyperscale and AI Hub

Hyderabad has firmly established itself as India’s second-largest future data centre market with a total development pipeline of 1.93 GW (1,932.5 MW). The city currently has 0.03 GW (32.7 MW) under construction, 0.63 GW (633.5 MW) in committed developments and 1.30 GW (1,299 MW) in early-stage projects.

Supported by proactive government policies, lower operating costs and increasing investments from global technology companies, Hyderabad continues to attract significant hyperscale and AI-led infrastructure development.

Chennai Strengthens Its Position as a Strategic Connectivity Gateway

Chennai’s data centre market continues to gain momentum, backed by its role as India’s key gateway for Southeast Asian digital traffic. The city’s total pipeline has reached 1.36 GW (1,359.5 MW), including 0.04 GW (42.5 MW) under construction, 0.32 GW (319.5 MW) committed and 1.04 GW (1,040 MW) in early-stage developments.

Strong subsea cable connectivity, competitive power tariffs and supportive policy frameworks continue to attract investment into the city’s digital infrastructure ecosystem.

NCR, Pune and Bengaluru Continue to Expand

The National Capital Region (NCR), Pune and Bengaluru are also witnessing sustained development activity as operators diversify capacity across multiple markets.

NCR has a total pipeline of 0.54 GW (541.4 MW), while Pune’s development pipeline stands at 0.43 GW (425.6 MW). Bengaluru, driven by enterprise demand, global capability centres and technology occupiers, has a pipeline of 0.18 GW (182 MW). Kolkata’s future pipeline currently stands at 0.13 GW (133.4 MW).

Outlook: India Enters a New Data Centre Expansion Cycle

India’s data centre industry is entering a new phase of growth, underpinned by the convergence of AI-led digital transformation, hyperscale cloud expansion, enterprise digitisation and regulatory-driven data localisation requirements.

The significant share of early-stage developments—representing nearly two-thirds of the total pipeline—demonstrates strong confidence in India’s long-term digital economy prospects. As global technology companies continue to invest in next-generation computing infrastructure, India’s data centre ecosystem is expected to remain one of the fastest-growing globally.

With a future development pipeline of 8.33 GW (8,326.6 MW)—more than five times the country’s current live operational capacity of 1.6 GW—India is well positioned to emerge as a leading global hub for hyperscale, cloud and AI infrastructure over the coming decade.