New Delhi, June 2: India’s data centre sector is witnessing strong expansion, driven by rapid adoption of artificial intelligence (AI) technologies, with total leasing activity crossing the 2-gigawatt (GW) mark, according to industry updates.
The surge in demand reflects the growing need for high-capacity computing infrastructure to support AI workloads, cloud services, and data-intensive applications across sectors such as finance, e-commerce, telecommunications, and digital services.
Industry experts said the AI-driven digital transformation is significantly boosting investments in data centre infrastructure, with both domestic and global players expanding capacity to meet rising demand.
India is increasingly emerging as a key destination for data centre development due to its large digital user base, supportive policy environment, and rapid growth in cloud adoption. This has encouraged major technology firms and infrastructure developers to scale up operations across multiple cities.
The expansion is also expected to improve data localisation capabilities, strengthen digital security frameworks, and support the country’s broader ambitions in artificial intelligence and advanced computing.
Analysts believe the continued growth of AI applications will further accelerate demand for data storage and processing infrastructure, positioning India as a major data centre hub in the Asia-Pacific region.