India is emerging as one of the global data centre hubs, with developers and cloud companies from across the world turning attention to the country as established markets struggle with land, power and infrastructure shortages.
A new report by ICICI Securities says the United States, Europe and several mature Asia-Pacific markets are facing growing capacity constraints, making it harder to build facilities that can support the rising demand for artificial intelligence (AI), cloud computing and digital services. India, by contrast, remains one of the least-constrained markets, creating a significant opportunity for fresh investment.
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Global capacity crunch shifts focus to India
Hyperscale cloud providers and AI companies now seek locations where projects can move forward faster without facing land or electricity shortages.
Many traditional tech hubs are now approaching their development limits, while India still offers room for large-scale expansion.
The country’s growing digital economy, favourable policy environment and increasing demand for data localisation are further strengthening its position. Rising internet usage, enterprise cloud adoption and AI workloads are also driving the need for new digital infrastructure.
Also Read: Google to Build Asia’s Biggest 1 GW Data Hub in Visakhapatnam
A strong pipeline reflects investor confidence
India currently has around 1.6 gigawatts (GW) of operational data centre capacity and ranks among the leading markets in Asia-Pacific for future development. The country has a development pipeline of roughly 3.1 GW, placing it among the region’s fastest-growing digital infrastructure markets.
Industry estimates suggest India’s total data centre capacity could exceed 3 GW by 2028. Strong investments from global hyperscalers, cloud service providers and infrastructure firms support this. Mumbai continues to lead the sector, while Chennai, Hyderabad, Noida and Pune are rapidly expanding their presence.
India’s lower development constraints could help it capture a larger share of future global data centre investments as AI adoption accelerates worldwide.
The country’s advantage now goes beyond cost. As AI and cloud infrastructure become central to the global digital economy, the country’s ability to deliver land, power and scalable capacity could determine how quickly it moves from a regional player to a global data centre hub.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
