Mumbai and Hyderabad are at the forefront of India’s AI-driven data centre growth, surpassing other major markets such as Chennai and Delhi-NCR. Favourable factors including strong connectivity, reliable power supply, skilled talent, and proximity to business hubs have positioned these cities as prime investment destinations.

Recently, Amazon Web Services (AWS) committed $8.3 billion to cloud infrastructure in Mumbai and Rs 60,000 crore for data centres in Hyderabad. Similarly, CtrlS Datacenters announced a data centre park near Hyderabad with a 600 MW IT load capacity. Sify and STT GDC India have also outlined large-scale investment plans for expanding their data centre footprint.

According to Cushman and Wakefield, India’s total data centre capacity is expected to triple by 2028, reaching an IT load of 3.29 MW. Mumbai currently leads with 54% of the existing installed capacity, while Hyderabad is poised to join the top-tier markets as multiple projects near completion.