Mumbai, Hyderabad drive India’s rise as global data centre powerhouse

Mumbai has entered the world's top 15 data centre markets by operational capacity, while Hyderabad has emerged as one of the fastest-growing hubs, according to Knight Frank. The report highlights India's expanding digital infrastructure, driven by cloud adoption, AI and sustained investments.

New Delhi: India’s data centre sector is strengthening its position on the global digital infrastructure map, with Mumbai ranking among the world’s top 15 data centre markets by operational capacity and Hyderabad emerging as one of the fastest-growing hubs, according to a report released on Thursday.

As per analysis by Knight Frank, Mumbai ranked 15th globally by live operational data centre capacity and 11th globally by development pipeline, while Hyderabad stood 27th globally in operational capacity and 19th by future development pipeline.

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Covering 36 leading data centre markets across North America, Europe, Asia-Pacific, the Middle East and Africa, the report assesses markets based on operational IT capacity and future pipeline capacity.

Mumbai currently hosts 774 MW of live IT capacity and nearly 5 GW of pipeline capacity, reinforcing its position as India’s largest data centre hub and one of the leading digital infrastructure destinations in the Asia-Pacific region.

However, Hyderabad which operates from a smaller base of 151 MW has a development pipeline of more than 2.2 GW.

Meanwhile, Chennai also strengthened its position as a gateway for Southeast Asian internet traffic supported by competitive power costs and favourable policies. While Bengaluru continues to attract demand from Global Capability Centres (GCCs), research and development centres and enterprise colocation requirements.

In addition, emerging markets such as Pune and the National Capital Region (NCR) are also witnessing capacity expansion, while Tier-II cities including Visakhapatnam and Jamnagar are attracting interest for large-scale greenfield developments backed by policy support and planned subsea cable connectivity.

The report further noted that India’s growing presence in global rankings reflects the country’s expanding digital economy, rising cloud adoption, increasing deployment of artificial intelligence and sustained investments by hyperscale operators.

“Mumbai’s position among the world’s leading operational markets reflects years of investment in connectivity, enterprise demand and cloud infrastructure, while Hyderabad’s strong pipeline highlights the confidence global operators have in India’s long-term growth story,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

He said India possesses several structural advantages, including a large digital consumer base, improving international connectivity through subsea cable networks, competitive operating costs and supportive government policies.

However, the report noted that the next phase of growth will depend on factors such as timely power availability, transmission infrastructure upgrades, faster approvals, expansion of fibre networks and greater adoption of renewable energy.

Joseph Thilak, Head of Data Centre Business (India) at Knight Frank India, said sustained cloud adoption, AI-led demand and enterprise digitalisation are pushing operators to expand capacity while also exploring emerging markets.

According to the report, continued investment in infrastructure, energy security and regulatory efficiency could position India among the world’s most significant data centre destinations over the coming decade.