From Mumbai to Jamnagar: India's data centre map is rapidly expanding, shows report

India's data centre sector is undergoing a significant transformation, fueled by advancements in artificial intelligence, cloud computing, and stringent data localization mandates. According to the latest report from Knight Frank, the country's operational data centre capacity has surged to over 1.6 GW, marking a staggering increase from just 296 MW in 2016. Mumbai continues to reign supreme in this burgeoning landscape, contributing nearly 47% of the nation’s total live capacity. The city’s status as India’s financial capital, combined with robust fibre connectivity and access to global subsea cable networks, solidifies its dominance. By the conclusion of 2025, Mumbai's capacity is projected to reach 766.6 MW, making it an attractive destination for hyperscale cloud providers and AI-driven infrastructure investments. Chennai and Hyderabad are also rising to prominence, with capacities of 191.5 MW and 151.4 MW, respectively. Chennai's strategic position as a gateway to Southeast Asia enhances its appeal, while Hyderabad is rapidly establishing itself as a hub for AI infrastructure. Other cities like Bengaluru, Pune, and the Delhi-NCR region are also strengthening their foothold. Bengaluru, known as India's tech capital, is focusing on high-density colocation facilities tailored for research and Global Capability Centres. Pune has emerged as a cost-effective alternative, benefiting from supportive IT policies, while Delhi-NCR continues to be a vital hub for banking, financial services, and public cloud providers, witnessing a 55% growth in live capacity from 2022 to 2025. Emerging locations such as Kolkata are also witnessing growth, with its live capacity jumping to 23.1 MW, aided by a new cable landing station at Digha, which is set to enhance connectivity in eastern and northeastern India. Visakhapatnam and Jamnagar are attracting substantial investments, with AdaniConneX and Google planning a massive AI data centre campus in Visakhapatnam, backed by a $15 billion investment over the next five years. Similarly, Reliance Industries has proposed a 1 GW AI-focused data centre in Jamnagar, which could emerge as one of the largest globally. AI's influence is undeniable, driving 78% of data centre leasing activity in 2025, a significant jump from 23% the previous year. The introduction of the Digital Personal Data Protection Act is further spurring demand for localized data storage and processing. With over 8.3 GW of future capacity in development and strong governmental support, India’s data centre market is rapidly evolving into a pivotal global hub for AI and cloud infrastructure.