Data Centres Attract 40% of Institutional Capital in June Quarter
• Data centres in India accounted for 40% of institutional capital investments in the June quarter, driven by rapid AI adoption, cloud expansion, and data localisation needs, according to The Economic Times. The country currently has 271 data centres, with major hubs in Mumbai, Hyderabad, Delhi NCR, Bengaluru, and Chennai. IT capacity has more than doubled to 387 MW in 2025 from 191 MW in
• Major global players like Amazon Web Services, Microsoft, and Google have committed $67.5 billion to India's digital infrastructure. The government projects that AI-driven digital infrastructure could catalyse up to $200 billion in investments in the coming years.
Impact & Risks
The surge in data centre investments is expected to boost India's digital infrastructure, creating opportunities in technology, real estate, and employment. However, the industry faces challenges in execution and maintaining the pace of growth. The focus on AI and digital transformation could also lead to increased competition and higher operational costs for smaller players.
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