Synopsis: The demand for Artificial Intelligence, cloud computing and digital services is going up. So global tech gaints are putting billions of dollars into building data centres in India.
More and more people are using Artificial Intelligence, cloud computing, digital payments, e-commerce and data storage in India, that is why India is getting a lot of investments in data centres. Data centres are getting a lot of attention because people need space to store their data and use Artificial Intelligence and cloud computing. A report by Colliers says that the capacity of data centres in India has increased more than four times in the last six to seven years. As of April 2025 the capacity of data centres in India is 1,263 MW.
It is expected to go up to 4,500 MW by 2030. The data centre sector will likely get investments of around 20 to 25 billion dollars in the five to six years. This is because big companies are investing in data centres and the government is supporting this sector.
India’s Largest Data Centre Hubs
Mumbai
Mumbai is a big place for data centres and digital infrastructure in the country. It has a lot of data centres, in fact about half of India’s working data centre capacity is in Mumbai. About 49 percent of the development pipeline for the whole country is also in Mumbai.
The operational capacity of Mumbai went up to 594 MW in 2025, and it is expected to go over 1 GW by the end of 2026. Big operators like AWS, NTT Data, Yotta, CtrlS STT GDC, Sify and AirTrunk have set up facilities in Mumbai and Navi Mumbai and new investments are still coming in because the demand for Artificial Intelligence, cloud computing and data storage is getting bigger.AirTrunk has recently announced that it plans to invest $30 billion in India by 2030 and Mumbai is still one of the first places where AirTrunk will be investing.
Hyderabad
Hyderabad is growing fast as a place for data centres in India because a lot of companies that provide cloud services, AI and technology are looking for space to move in. In 2025, Hyderabad had around 11 percent of India’s data centre capacity which is 135 MW that is already working and there are also a lot of projects that are going to come up soon.
The city of Hyderabad has a strong base for information technology, plenty of land, a reliable supply of electricity and the government is very supportive. Big companies like Microsoft, AWS, CtrlS, STT GDC, AdaniConneX and AirTrunk have already set up their facilities here. For example, in June 2026 AirTrunk announced that it will invest $30 billion, which’s around in a new data centre campus in India which includes Hyderabad, combined capacity of 3 campuses in 3 cities will be 600 MW of power.
Chennai
Chennai is a big deal for data centres in India as the city is in a strategic spot and it is very easy to connect to other countries from there. A lot of submarine cables that connect India to other parts of the world like Southeast Asia, the Middle East and Europe land in Chennai, this makes Chennai a great place for cloud companies and hyperscalers to set up their data centres.
Chennai has a lot of space for data centres , around 17% (191 MW) of all the data centre space in India was in Chennai in 2025 making it one of the biggest data centre cities in India after Mumbai. Big companies like NTT Data, STT GDC, Sify, CtrlS, AdaniConneX and AirTrunk all have data centres in Chennai.
Visakhapatnam
Visakhapatnam is becoming an emerging place for data centres in India because it has a lot of land and access to energy. People started to notice Visakhapatnam after Google said they would build a data centre and cloud infrastructure project there of around 1GW capacity
AdaniConneX is interested in Visakhapatnam for setting up their data center. The city is near the coast, has good connections through subsea cables. The government of Andhra Pradesh is also helping so that Visakhapatnam can become an alternative to cities like Mumbai and Chennai.
Jamnagar
Jamnagar is becoming a part of India’s plan to build more data centres, this is happening because Reliance Industries has partnered with Meta and they want to build a lot of infrastructure for artificial intelligence in the city. The company has said it will build a big data centre that is ready for AI with a capacity of 168 MW. They like Jamnagar because it has a lot of land, a power system and a way to use renewable energy.
Future Outlook
India’s data centre industry is going to grow fast in the coming years because more and more businesses are using AI, cloud computing and digital services. The cities of Mumbai, Hyderabad and Chennai are still the established hub for data centres but other cities like Visakhapatnam and Jamnagar are also getting a lot of investments and India’s data centre industry could see these cities become important places for data centres in the future.
Written by Shreya Tiwari
