Mumbai, Hyderabad and Chennai Are Racing to Become India’s AI Infrastructure Hubs
Mumbai, Hyderabad and Chennai are leading India's next wave of data centre development, with the country's future pipeline reaching 8.33 GW as AI adoption, cloud computing growth and data localisation requirements continue to drive demand for digital infrastructure.
India's future data centre pipeline has reached 8.33 GW, more than five times the country's current live capacity of 1.6 GW.
Mumbai leads the pipeline with 3.75 GW, followed by Hyderabad at 1.93 GW and Chennai at 1.36 GW.
Knight Frank India says AI adoption, cloud growth and data localisation requirements are driving demand for additional data centre capacity across the country.
Highlights
India's future data centre pipeline has reached 8.33 GW, more than five times the country's current live capacity of 1.6 GW.
Mumbai leads the pipeline with 3.75 GW, followed by Hyderabad at 1.93 GW and Chennai at 1.36 GW.
Knight Frank India says AI adoption, cloud growth and data localisation requirements are driving demand for additional data centre capacity across the country.
India’s data centre sector is witnessing a significant expansion phase, with the country’s future development pipeline reaching 8.33 GW, according to Knight Frank India. The growth is being driven by rising artificial intelligence (AI) adoption, continued cloud computing expansion and increasing data localisation requirements across industries.
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Key Highlights
India's future data centre pipeline has reached 8.33 GW, according to Knight Frank India.
Current live data centre capacity in India stands at 1.6 GW.
Mumbai leads the pipeline with 3.75 GW of planned capacity.
Hyderabad ranks second with a future development pipeline of 1.93 GW.
Chennai follows with a pipeline of 1.36 GW.
AI adoption, cloud computing growth and data localisation requirements are driving demand.
Vizag has emerged as an emerging market attracting gigawatt-scale development proposals.
Knight Frank India noted that the country’s current live data centre capacity stands at 1.6 GW. In comparison, the future development pipeline is more than five times the existing operational capacity, highlighting the scale of infrastructure planned across major markets.
According to the consultancy, 0.32 GW of capacity is currently under construction, while 2.92 GW has reached the committed stage. A further 5.41 GW is in the early stages of development, indicating a substantial pipeline of future projects.
Mumbai Continues to Lead
Mumbai remains India’s largest future data centre market, accounting for a development pipeline of 3.75 GW the city’s pipeline includes 0.17 GW under construction, 1.54 GW in committed developments and 2.21 GW in early-stage projects. Knight Frank India said Mumbai continues to benefit from its position as India’s financial capital, supported by extensive fibre connectivity, robust power infrastructure and a concentration of international subsea cable landing stations.
These factors have helped Mumbai maintain its position as the country’s leading data centre destination.
Hyderabad has emerged as the second-largest future data centre market in India, with a pipeline of 1.93 GW according to Knight Frank India, the city’s growth has been supported by proactive government policies, lower operating costs and investments from global technology companies. Hyderabad’s pipeline includes 0.03 GW under construction, 0.63 GW in committed projects and 1.30 GW in early-stage developments.
The city has increasingly attracted attention from developers and investors looking to establish new digital infrastructure capacity.
Chennai Strengthens Its Position
Chennai ranks third among India’s future data centre markets with a development pipeline of 1.36 GW Knight Frank India said Chennai benefits from its role as a gateway for Southeast Asian digital traffic, supported by strong subsea cable connectivity and competitive power tariffs. The city’s pipeline includes 0.04 GW under construction, 0.32 GW in committed developments and 1.04 GW in early-stage projects.
The report noted that these factors continue to support Chennai’s position as one of India’s key data centre destinations.
Beyond the three leading cities, other markets are also witnessing growth in planned data centre capacity Knight Frank India estimates future pipelines of 0.54 GW in NCR, 0.43 GW in Pune, 0.18 GW in Bengaluru and 0.13 GW in Kolkata. Together, these markets contribute to the broader expansion of India’s digital infrastructure landscape.
The report also highlighted Vizag as an emerging market that has attracted gigawatt-scale development proposals. According to Knight Frank India, government initiatives, the availability of large land parcels and planned subsea connectivity projects are supporting interest in the city.
Commenting on the trend, Viral Desai, Senior Executive Director at Knight Frank India, said India’s data centre growth story is increasingly becoming a tale of regional specialisation. While Mumbai continues to anchor hyperscale developments, Hyderabad is emerging as an AI infrastructure destination and Chennai is strengthening its role as a gateway for international digital traffic.
With AI adoption, cloud growth and data localisation requirements continuing to drive demand, India’s data centre development pipeline reflects the growing importance of digital infrastructure across multiple regions of the country.
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FAQs
What is India's current data centre development pipeline?
According to Knight Frank India, India's future data centre development pipeline has reached 8.33 GW, compared to the country's current live data centre capacity of 1.6 GW.
Which city has the largest data centre pipeline in India?
Mumbai has the largest future data centre pipeline in India at 3.75 GW, making it the country's leading market for upcoming data centre developments.
Why is demand for data centres increasing in India?
Knight Frank India said growing artificial intelligence (AI) adoption, cloud computing expansion and data localisation requirements are driving demand for additional data centre capacity across the country.
Which cities are leading India's future data centre growth?
Mumbai, Hyderabad and Chennai are the leading markets. Mumbai has a 3.75 GW pipeline, Hyderabad 1.93 GW and Chennai 1.36 GW.
Which other cities are expanding their data centre capacity?
Apart from Mumbai, Hyderabad and Chennai, NCR, Pune, Bengaluru, Kolkata and Vizag are also witnessing growth in planned data centre developments, according to Knight Frank India.
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