India’s Data Centre Pipeline Surges to 8.33 GW as AI, Cloud Adoption and Digital Transformation Drive Unprecedented Growth: Knight Frank India

KhabarPatri English
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Mumbai : India’s data centre sector is entering a transformative phase of growth, with the country’s total development pipeline reaching an estimated 8.33 GW (8,326.6 MW), according to the latest insights from Knight Frank India. The expansion is being fueled by accelerating adoption of Artificial Intelligence (AI), cloud computing, enterprise digitisation, and evolving data localisation requirements.

The report highlights that India currently has 322.4 MW (0.32 GW) of data centre capacity under construction, while 2,920.2 MW (2.92 GW) is in the committed stage. Additionally, 5,406 MW (5.41 GW) of capacity is in the early stages of development, reflecting strong investor confidence in the country’s digital infrastructure ecosystem.

The future development pipeline is now more than five times India’s existing live operational data centre capacity of approximately 1.6 GW, underscoring the scale of investments being planned by hyperscalers, cloud providers, AI infrastructure operators, and institutional investors.

Commenting on the sector’s evolution, Viral Desai, International Partner and Senior Executive Director – Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets & Retail, Knight Frank India, said that India’s data centre growth story is increasingly being defined by regional specialisation. While Mumbai continues to dominate due to its connectivity advantages and subsea cable infrastructure, Hyderabad is rapidly emerging as a preferred AI infrastructure destination, and Chennai is strengthening its position as a strategic gateway for international data traffic.

Among India’s key data centre markets, Mumbai leads with a total pipeline of 3.75 GW, followed by Hyderabad at 1.93 GW and Chennai at 1.36 GW. Other emerging markets include NCR, Pune, Bengaluru, and Kolkata, all witnessing sustained development activity as operators diversify capacity across multiple geographies.

Knight Frank India noted that the significant share of early-stage developments—accounting for nearly two-thirds of the total pipeline—demonstrates long-term confidence in India’s digital economy. As global technology companies continue investing in next-generation computing infrastructure, the country is expected to remain one of the world’s fastest-growing data centre markets.

With robust government support, expanding digital consumption, AI-led transformation initiatives, and increasing demand for cloud services, India is well-positioned to emerge as a leading global hub for hyperscale, cloud, and AI infrastructure over the coming decade.

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