India’s data centre expansion is accelerating as technology companies increase investments in artificial intelligence and cloud infrastructure, while the US confronts growing opposition to new facilities. Amazon, Microsoft and Google have committed nearly $57 bn to India’s AI, cloud and data centre infrastructure in less than a year. India’s data centre capacity crossed 2.1 GW at the end of the June quarter, according to S&P Global and CBRE. About 200 MW was added during the first six months of the year, with another 500 MW expected to be commissioned through the rest of 2026. India generates nearly 20 per cent of the world’s data but hosts about 3 per cent of global data centre capacity. Mumbai, including Navi Mumbai, remains the leading market, accounting for about 44 per cent of national capacity. Noida contributes 20 per cent, followed by Chennai at 10 per cent, Hyderabad at 9 per cent, Pune at 8 per cent and Bengaluru at 6 per cent. Mumbai’s subsea cable landing stations and access to international connectivity have helped it attract hyperscalers, although constraints on land, power and expansion are encouraging developers to consider other cities. Maharashtra and Tamil Nadu have more than 900 MW and 250 MW of built capacity respectively, while interest is increasing in Visakhapatnam, Ahmedabad, Kochi, Nagpur, Lucknow, Jaipur, Chandigarh and Patna. These locations offer greater land availability, lower operating costs, access to renewable energy and opportunities for larger AI computing clusters. Smaller edge facilities are already operating in some of these markets. The US experience is highlighting the infrastructure and community risks associated with rapid growth. More than 15 states have proposed restrictions over electricity demand, water consumption and local impacts, while some cities have paused projects or grid connections. In India, protests in Thane and Visakhapatnam have raised similar concerns. States are responding by integrating renewable energy into data centre policies, while operators are adopting air-cooled systems to reduce water use. The sector’s expansion will therefore depend on balancing digital ambitions with reliable power, connectivity, land, cooling resources and community acceptance.