India Data Centre Boom: Mumbai Top 15, Hyderabad Surges

India is experiencing a significant data centre boom, driven by the rapid adoption of cloud computing and artificial intelligence, according to the Knight Frank Global Data Centre Atlas 2026.

Mumbai has emerged as a key player, currently ranking 15th globally in operational data centre capacity with 774 MW. The city also holds the 11th position worldwide for its development pipeline, which stands at nearly 5 GW.

This makes Mumbai India’s “gateway data centre market” and a major digital infrastructure hub across the Asia-Pacific region. Its strong position is supported by robust connectivity, high enterprise demand, and an established cloud ecosystem.

Hyderabad is also rapidly advancing, holding the 27th global rank for operational capacity at 151 MW. However, its development pipeline is substantial, exceeding 2.2 GW, placing it 19th globally for future capacity.

This projected growth indicates Hyderabad’s planned capacity is approximately 15 times its existing operational base. The city attracts significant forward investment due to ample land availability, proactive policy support, and a burgeoning technology ecosystem, alongside competitive operating costs.

Addressing Infrastructure Headwinds for Global Standing

To break into the top 10 global markets, India must address several infrastructure challenges. Power availability and transmission are critical areas needing urgent attention.

Faster power provisioning and the expansion of renewable energy sources are essential. Accelerated transmission upgrades, streamlined approval processes, and the availability of large, development-ready sites are also key requirements.

Beyond Mumbai and Hyderabad, India’s data centre landscape is diversifying. Bengaluru benefits from Global Capability Centres and R&D operations, while Pune and the National Capital Region are expanding due to demand from BFSI and public cloud providers.

Chennai is strengthening its role as a gateway for internet traffic to Southeast Asia, supported by competitive power tariffs and a favourable policy environment. Emerging greenfield data centre destinations include Visakhapatnam and Jamnagar.

Global Context and Strategic Focus

The global data centre market is valued at $1.95 trillion, with an anticipated 48 GW of additional capacity by 2029. Artificial intelligence workloads are a major driver, projected to increase from 8 GW to 27 GW.

These AI workloads demand data centres with higher power density and more sophisticated cooling and energy infrastructure. India’s primary challenge is shifting its focus from customer acquisition to robust infrastructure development.

This includes ensuring timely power availability, developing transmission infrastructure, and securing faster approvals. Expanded fibre connectivity, sustainable energy sourcing, and large campus-scale developments capable of supporting AI workloads are also crucial.

India’s ability to execute these comprehensive plans will determine its transition from a fast-growing market to a top global digital infrastructure destination.