India’s data center ecosystem is entering a rapid growth phase, driven by AI, says Kotak Mutual Fund. Globally, AI is tripling data center demand, and India is emerging as a hub. Although 20% of global data demand is from India, only 3% is stored locally, highlighting huge expansion potential. India’s AI market is growing 35% annually, with AI data center capacity set to triple by 2027, powered by hyperscalars. By 2030, capacity could rise from 41MW in 2024 to 619MW. Government incentives, localisation, and cloud adoption position India as a global AI infrastructure hub. Key aspects:
Published on September 23, 2025
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.