India Data Centre Capacity Surpasses 1.6 GW in 2025
Real Estate

India Data Centre Capacity Surpasses 1.6 GW in 2025

India's data centre market has crossed 1.6 GW of live IT capacity across seven key markets in 2025, up from 296 MW in 2016, according to Knight Frank India's India Data Centre Market Update 2025. The sector added 371.5 MW of capacity during 2025, following 361.6 MW added in 2024, reflecting sustained growth driven by artificial intelligence (AI), cloud adoption, enterprise digitisation and data localisation requirements.

The report notes that committed and early-stage development pipelines now exceed 8 GW, supported by investment commitments of more than USD 100 billion. AI-related colocation leasing reached 348 MW in 2025, while cumulative AI-linked leasing capacity rose to 492.2 MW, highlighting the growing impact of generative AI and high-performance computing workloads on digital infrastructure demand.

Mumbai retained its position as India's largest data centre market, accounting for 47 per cent of total live capacity at 766.6 MW. Hyderabad emerged as a leading AI infrastructure destination, while Chennai strengthened its role as a gateway for international data traffic through subsea cable connectivity.

Knight Frank also highlighted the emergence of Tier-II cities such as Visakhapatnam and Jamnagar as future hyperscale and AI infrastructure hubs, supported by large-scale investments and planned digital infrastructure projects.

The report noted that policy support, sovereign AI initiatives and increasing cloud adoption are accelerating sector growth, although challenges related to power infrastructure, permitting processes and sustainability remain key considerations for future expansion.

India's data centre market has crossed 1.6 GW of live IT capacity across seven key markets in 2025, up from 296 MW in 2016, according to Knight Frank India's India Data Centre Market Update 2025. The sector added 371.5 MW of capacity during 2025, following 361.6 MW added in 2024, reflecting sustained growth driven by artificial intelligence (AI), cloud adoption, enterprise digitisation and data localisation requirements. The report notes that committed and early-stage development pipelines now exceed 8 GW, supported by investment commitments of more than USD 100 billion. AI-related colocation leasing reached 348 MW in 2025, while cumulative AI-linked leasing capacity rose to 492.2 MW, highlighting the growing impact of generative AI and high-performance computing workloads on digital infrastructure demand. Mumbai retained its position as India's largest data centre market, accounting for 47 per cent of total live capacity at 766.6 MW. Hyderabad emerged as a leading AI infrastructure destination, while Chennai strengthened its role as a gateway for international data traffic through subsea cable connectivity. Knight Frank also highlighted the emergence of Tier-II cities such as Visakhapatnam and Jamnagar as future hyperscale and AI infrastructure hubs, supported by large-scale investments and planned digital infrastructure projects. The report noted that policy support, sovereign AI initiatives and increasing cloud adoption are accelerating sector growth, although challenges related to power infrastructure, permitting processes and sustainability remain key considerations for future expansion.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code