India's data centre sector is witnessing a massive infrastructure expansion, with the total development pipeline across major markets reaching 8.33 gigawatts (GW), more than five times the country's current operational capacity of 1.6 GW, according to a report by Knight Frank India.
The rapid growth is being driven by increasing adoption of artificial intelligence (AI), expanding cloud computing requirements and data localisation policies, which are accelerating demand for advanced digital infrastructure.
Knight Frank India said 0.32 GW of data centre capacity is currently under construction across the country, while 2.92 GW has reached the committed stage. A further 5.41 GW remains in the early stages of development, highlighting strong investor confidence in India's long-term digital economy.
"The significant share of early-stage developments -- representing nearly two-thirds of the total pipeline -- demonstrates strong confidence in India's long-term digital economy prospects," the report said.
Mumbai continues to dominate the sector with the largest development pipeline of 3.75 GW. This includes 0.17 GW under construction, 1.54 GW in committed projects and 2.21 GW in early-stage development.
According to Knight Frank, Mumbai's position is supported by its status as India's financial hub, extensive fibre connectivity, reliable power infrastructure and concentration of international subsea cable landing stations, making it a preferred destination for large-scale cloud and AI deployments.
Hyderabad has emerged as the second-largest market with a future pipeline of 1.93 GW. The city has benefited from proactive government policies, lower operating costs and growing investments from global technology companies.
Chennai follows with a pipeline of 1.36 GW, aided by its role as a key gateway for Southeast Asian digital traffic, strong subsea cable connectivity and competitive power tariffs.
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Knight Frank India highlighted the emergence of regional specialisation within the sector. Viral Desai, International Partner and Senior Executive Director at Knight Frank India, said Mumbai continues to anchor hyperscale deployments, while Hyderabad is increasingly becoming a preferred destination for AI infrastructure. Chennai, meanwhile, is strengthening its position as a strategic gateway for international data traffic.
Desai also pointed to Visakhapatnam's growing prominence as a greenfield data centre market, supported by government backing, large land availability and planned subsea cable connectivity.
Other major markets are also expanding, with the National Capital Region accounting for a pipeline of 0.54 GW, followed by Pune at 0.43 GW and Bengaluru at 0.18 GW.
Knight Frank expects India to remain among the world's fastest-growing data centre markets over the next decade as global technology firms continue investing in next-generation computing infrastructure.
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